WASHINGTON (dpa-AFX) - The U.S. dollar edged lower on Friday amid rising prospects of an interest rate cut by the Federal Reserve in September after the latest readings on the nation's inflation.
In economic news, a report from the Commerce Department said its personal consumption expenditures (PCE) price index inched up by 0.1% in June after coming in unchanged in May. The uptick by the index matched expectations.
The report also said the annual rate of growth by the PCE price index slowed to 2.5% in June from 2.6% in May. The slowdown in year-over-year growth also met estimates.
Meanwhile, the Commerce Department said the core PCE price index, which excludes food and energy prices, rose by 0.2% in June after inching up by 0.1% in May. Economists had expected another 0.1% uptick.
The annual rate of growth by the core PCE price index was unchanged from the previous month at 2.6% in June, while economists had expected the pace of growth to slow to 2.5%.
The readings on inflation, which are said to be preferred by the Federal Reserve, were included in the Commerce Department's report on personal income and spending.
The University of Michigan's data showed consumer sentiment in the U.S. deteriorated by slightly less than previously estimated in the month of July. The report said the consumer sentiment index for July was upwardly revised to 66.4 from the preliminary reading of 66.0. Economists had expected the reading to be unrevised.
The dollar index, which was up at 104.45 in the Asian session, stayed in a range for a while, and shed ground in the New York session after the release of the Personal Consumption Expenditure data. The index was last seen at 104.31, down marginally from the previous close.
Against the Euro, the dollar weakened to 1.0859, and weakened to 1.2872 against Pound Sterling.
Against the Japanese currency, the dollar was down at 153.76 yen. The Aussie firmed against the U.S. dollar to 0.6549 a unit. The dollar gained against Swiss franc, fetching CHF 0.8839 a unit, and against the Loonie, it edged up marginally to C$ 1.3836.
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