Surprise inflation figures cause dollar drop

April 12, 2023 (MLN): The dollar fell sharply on Wednesday to 101.52 from around 102.11 prior to the data release, showing that U.S. consumer prices had risen less than expected in March.
In contrast, the euro increased in value, reaching $1.09900, its highest point since February 2nd. Similarly, the dollar fell against the Japanese yen, dipping to 132.81 yen from around 133.85 before the data.
The Consumer Price Index, a key measure of inflation, only increased by 0.1% in March, falling below economists' expectations of a 0.2% gain. However, core prices, which exclude volatile food and energy costs, rose by the expected 0.4%.
This unexpected data may reduce the likelihood of the Federal Reserve continuing to increase interest rates, which had been anticipated in response to rising inflation. 
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Posted on: 2023-04-12T18:23:17+05:00
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