U.S. dollar declines on soft inflation data

Source: Xinhua| 2017-08-12 05:01:12|Editor: huaxia
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NEW YORK, Aug. 11 (Xinhua) -- The U.S. dollar traded lower against other major currencies on Friday after data showed U.S. consumer prices rose less than expected in July.

The Consumer Price Index for All Urban Consumers rose 0.1 percent in July on a seasonally adjusted basis, the U.S. Labor Department reported Friday, lower than market consensus of a 0.2-percent gain. Over the last 12 months, the all items index rose 1.7 percent.

The weak inflation data raised market expectation for the Federal Reserve to keep interest rates lower for longer. Just 38 percent of investors expected the central bank to rates again at the end of the year, down from about 45 percent, according to the CME Group's FedWatch tool.

The dollar index, which measures the greenback against six major peers, was down 0.40 percent at 93.031 in late trading.

In late New York trading, the euro rose to 1.1828 U.S. dollars from 1.1756 U.S. dollars, and the British pound climbed to 1.3022 U.S. dollars from 1.2975 U.S. dollars. The Australian dollar increased to 0.7902 U.S. dollar from 0.7888 U.S. dollar.

The U.S. dollar bought 108.97 Japanese yen, lower than 109.32 yen of the previous session. The U.S. dollar declined to 0.9612 Swiss franc from 0.9637 Swiss franc, and it edged down to 1.2679 Canadian dollars from 1.2719 Canadian dollars. Enditem