Dollar continues decline following US inflation data

(MENAFN) On Wednesday, the dollar continued its decline, having dropped against major currencies the previous night. This downward trend was reinforced by positive U.S. producer price data, which increased expectations of a potential rate cut this year. The dollar's weakness came amid rising risk-sensitive currencies, fueled by a surprising drop in inflation that boosted stock markets. However, crucial U.S. consumer price index data, scheduled for later in the day, had yet to be released.

The Australian dollar reached its highest level in over three weeks, while the British pound traded near its highest level in more than two weeks, benefiting from its strongest daily performance against the dollar since late April. Meanwhile, the New Zealand dollar remained near a four-week high ahead of the Reserve Bank of New Zealand's upcoming monetary policy decision, with market opinions split on the likelihood of an interest rate cut.

The dollar index, which tracks the greenback against six major currencies, held steady at 102.63 after a 0.49 percent drop the previous night. Sterling was stable at USD1.2866, having gained 0.76 percent on Tuesday following unexpected data showing a decline in Britain's unemployment rate. The euro remained relatively unchanged at USD1.0996, slightly down from its peak of USD1.099975 the day before, which was its highest level since August 5.

The dollar was at 147.06 yen, maintaining its position around the 147 level throughout the week. The Australian dollar was little changed at USD0.6637, though it earlier touched USD0.66395, its highest level since July 23. The New Zealand dollar edged up by 0.07 percent to USD0.6081, staying close to its recent peak of USD0.60815 from Tuesday, a level last seen on July 18.

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