WASHINGTON (dpa-AFX) - The U.S. dollar drifted lower on Wednesday, extending recent losses, as soft inflation data eased concerns about the outlook for interest rates.
Data from the Labor Department showed consumer prices in the U.S. rose by slightly less than expected in the month of April, increasing by 0.3%, after rising by 0.4% in March. Economists had expected consumer prices to climb by another 0.4%.
The report also said the annual rate of consumer price growth slowed to 3.4% in April from 3.5% in March, in line with expectations. The annual rate of core consumer price growth decelerated to 3.6% in April from 3.8% in March. The slowdown also matched estimates.
In other economic news, data released by the Commerce Department said retail sales were virtually unchanged in April after climbing by a downwardly revised 0.6% in March. Economists had expected retail sales to rise by 0.4% compared to the 0.7% increase originally reported for the previous month.
The Federal Reserve Bank of New York released a report showing regional manufacturing activity unexpectedly contracted at a slightly faster rate in the month of May.
The New York Fed said its general business conditions index edged down to a negative 15.6 in May from a negative 14.3 in April, with a negative reading indicating contraction. Economists had expected the index to rise to a negative 10.0.
The National Association of Home Builders released a report showing an unexpected deterioration in U.S. homebuilder confidence in the month of May. The report said the NAHB/Wells Fargo Housing Market Index tumbled to 45 in May from 51 in April. Economists had expected the index to come in unchanged.
The dollar index dropped to 104.29, losing about 0.7%.
Against the Euro, the dollar weakened to 1.0885 from 1.0820. The dollar was down at 1.2684 against Pound Sterling, easing from 1.2591.
Against the Japanese currency, the dollar weakened to 154.86 yen, giving up about 1%. Against the Aussie, the dollar was at 0.6694, about 1% off the previous close of 0.6628.
The Swiss franc firmed to CHF 0.9022 against the greenback from CHF 0.9064, and the Loonie gained modestly, trading at C$ 1.3607 a unit of the U.S. currency.
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2024 AFX News
