Currencies
Dollar Weakens as US Data Points to Easing Inflation Pressure
- ISM data shows input costs slumped to a four-year low
- Nearly all peers in Group of 10 gained against US currency
A dollar gauge saw its biggest drop in nearly four weeks on Wednesday as price pressures in the US services industry eased and Federal Reserve Chair Jerome Powell said he wants to see inflation move sustainably to the US central bank’s 2% goal before starting to lower interest rates.
The Bloomberg Dollar Spot Index fell as much as 0.4% on an intraday basis on Wednesday — the steepest decline since March 8 — with nearly all currencies from developed economies gaining against the greenback. Growth in the US services sector eased last month while a gauge of input costs decreased to a four-year low, according to a report by the Institute for Supply Management.