U.S. dollar slips as markets expect lower inflation

Economy

12-12-2022, 22:00

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INA – SOURCES

The dollar fell on Monday, in thin trading as investors priced in a lower U.S. consumer price inflation number for November and a Federal Reserve likely to slow the pace of its rate increases at the conclusion of its two-day policy meeting on Wednesday.

Consumer inflation data for November will land on Tuesday and is expected to show a 6.1% rise in the core reading on a year-on-year basis, which excludes food and energy prices, down from 6.3% in October.

In late morning trading, the euro rose 0.1% against the dollar to $1.0546. The single European currency has gained almost 8% so far in the fourth quarter, as investors have previously banked on the European Central Bank sticking to a course of aggressive rate hikes.

The dollar was little changed against the Swiss franc at 0.9348 francs. Against the yen, however, the dollar rose 0.5% to 137.24.

The dollar index, which measures the greenback's value against six major currencies, was down 0.1% at 104.92.