Dollar Flat as Fed's Beige Book Highlights Sluggish Inflation
The U.S. dollar was flat against its rivals Wednesday. The Fed's Beige Book noted moderate wage growth, but that drew a muted reaction from the greenback.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.03% to 96.67.
Prices have risen modestly since the last Beige Book, with tariffs, freight costs and rising wages often cited as key factors, the Fed said. It added that consumer spending was mixed but suggested sluggish sales for both general retailers and auto dealers.
Wages grew moderately in most Fed districts for both skilled and unskilled workers, with only three reporting slight growth in workers' pay, the Fed said.
Hours before, data showed the trade deficit had narrowed more-than-expected in February.
The trade deficit, which measures the gap between what the United States imports and what it exports, narrowed to $49.40 billion in February, from $51.10 billion a month earlier.
GBP/USD fell 0.11% to 1.3034 as U.K. consumer prices fell short of expectations, strengthening fears that the Bank of England may soon impose a rate cut.
EUR/USD rose 0.13% to $1.1297 and USD/JPY added 0.04%% to Y112.04.
USD/CAD fell 0.03% to C$1.3346 as oil prices gave up gains. An unexpected fall in crude inventories was offset by smaller-than-expected draws in crude product inventories.