The US dollar is witnessing a significant decline, after the slowdown in US inflation showed expectations that the Federal Reserve will end monetary tightening following another rate hike next month.
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The US dollar is falling
The dollar fell today, Thursday, April 13, after data showing that US inflation rose, at a slower-than-expected pace, increased risk appetite and expectations that the Federal Reserve will end monetary tightening after another rate hike next month.
The dollar index, which measures the performance of the US currency against 6 major currencies, fell 0.03% to 101.44, hovering around a one-week low of 101.40 after falling 0.6% last night.
The US Consumer Price Index rose 0.1% last month after rising 0.4% in February.
Economists polled by Archyde.com had expected the index to rise 0.2% in March.
The euro rose 0.05% to $1.0994, after touching a two-month high of $1.1005 earlier in the session.
The Japanese yen fell 0.04% to 133.20 per dollar, and the pound sterling recorded the latest transactions at $1.2486, up 0.04% during the session.
The Australian dollar fell 0.01% to $0.669, and the New Zealand dollar fell 0.23% to $0.621.
And the banking sector turmoil sparked by the collapse of Silicon Valley Bank, last month, increased the bets that the US Federal Reserve will not raise interest rates to the level that was previously expected in order to reduce pressure on the sector.
Yesterday, the US Treasury stated that the US budget deficit increased by 65% in the first six months of the fiscal year compared to the previous year, as the deficit rose from $668 billion to more than $1.1 trillion.