The US dollar weakened against major peers on Wednesday, tumbling from a two-week high as softer-than-expected inflation data further eroded market confidence in a near-term Federal Reserve interest rate hike.
The currency’s decline marks a continuation of a broader sell-off, with the greenback on track to record its largest weekly loss in 12 weeks.
1% in the session. The move reflects a repricing of rate expectations following a disappointing June jobs report that has already dampened market enthusiasm for aggressive monetary tightening.
The dollar fetched 162.08 against the yen, down 0.1% in the session.
The move reflects a repricing of rate expectations following a disappointing June jobs report that has already dampened market enthusiasm for aggressive monetary tightening.
With inflation data now also coming in cooler than anticipated, traders are scaling back bets on a swift Fed hike, reducing the yield advantage that had previously supported the currency.
This development underscores a shifting macroeconomic landscape where labor market softness and easing price pressures are converging to limit the Federal Reserve’s policy options.