US dollar falls after softer-than-expected inflation reading
In short
The US dollar fell after a US inflation report came in softer than expected. The Commerce Department said the Personal Consumption Expenditures Price Index rose 0.3% last month, while economists had expected 0.4%.
This matters because traders changed their bets on Federal Reserve rate moves, and US Treasury yields fell. The report does not say how large the dollar drop was or which currencies moved most.
What the reporting says
The US dollar retreated against key currencies after US inflation came in softer than expected. The Commerce Department said the Personal Consumption Expenditures Price Index rose 0.3% last month, below economists’ forecast of 0.4%, and that helped push US Treasury yields lower as markets adjusted Federal Reserve rate expectations. The exact size of the currency move and which pairs moved most were not stated.
Why it matters
The dollar weakened against key currencies after the US Commerce Department reported the Personal Consumption Expenditures Price Index rose 0.3% last month, below economists’ 0.4% forecast. That softer reading shifted expectations for Federal Reserve interest rate action and pulled US Treasury yields lower. The reporting does not specify the exact currency pairs affected or the magnitude of the move.