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Dollar Index at 1-Week Lows Ahead of Inflation Data

2/14/2018, 6:07:10 PMMarket Analysis
 Dollar Index at 1-Week Lows Ahead of Inflation Data

The U.S. dollar was trading at one-week lows against other major currencies on Wednesday, as sentiment on the greenback remained vulnerable ahead of the release of highy-anticipated U.S. inflation data due later in the day.

Investors were eyeing an upcoming report on U.S. consumer price inflation data due later Wednesday for further clues on how fast the Federal Reserve will raise interest rates this year.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.19% at 89.43 by 02:05 a.m. ET (06:05 GMT), the lowest since February 6.

USD/JPY was down 0.55% at a 15-month low of 107.24 amid mounting expectations the Bank of Japan will follow the Federal Reserve and the European Central Bank's examples in normalizing monetary policy despite recent comments to the contrary by the Japanese central bank.

The safe-haven Swiss franc was also stronger, with USD/CHF down 0.15% at 0.9330.

Elsewhere, the euro was higher, with EUR/USD up 0.15% at 1.2371, while GBP/USD held steady at 1.3896.

The Australian and New Zealand dollars were stronger, with AUD/USD up 0.23% at 0.7876 and with NZD/USD climbing 0.56% to 0.7314.

Earlier Wednesday, the Reserve Bank of New Zealand said that inflation expectations ticked up to 2.1% from 2.0% for the first quarter.

In Australia, the Westpac consumer sentiment index fell 2.3% in February after a 1.8% rise the previous month.

Meanwhile, USD/CAD slipped 0.16% to trade at 1.2572.