Dollar index weakens further on soft US inflation data
Mumbai, Aug. 14 -- The dollar index continues to stay weak under 100 mark on Friday as soft inflation data is reducing bets of a Federal rate hike. Data released yesterday showed US core producer prices increased less than expected in July, offering further evidence that inflationary pressures are not broadly intensifying following Wednesday's subdued CPI report. However, uncertainty surrounding efforts to end the conflict and reopen the Strait of Hormuz remains a key risk to the inflation outlook and limiting downside in the safe haven currency. Meanwhile, the 10-year US Treasury yield hovered around 4.65% on Friday, holding a recent decline as softer-than-expected inflation data led investors to reduce expectations for a Federal Reserve...
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