Sat, 01 Oct 2022

NEW YORK, Aug. 10 (Xinhua) -- The U.S. dollar posted deep losses in late trading on Wednesday due to weaker-than-expected U.S. consumer price index (CPI) in July.

The dollar index, which measures the greenback against six major peers, was down 1.11 percent at 105.1960 in late trading.

U.S. CPI in July stayed unchanged from that in June, while market consensus forecasted 0.2 percent of month-on-month expansion, according to data issued by the U.S. Department of Labor on Wednesday morning. The index recorded 1.3 percent of month-on-month growth in June.

The core CPI excluding food and energy posted 0.3 percent of month-on-month increase in July, lower than market expectation of 0.5 percent and 0.7 percent of month-on-month rise in June.

"U.S. Consumer Price Index data for July surprised to the downside, hitting the buck as traders pared back on aggressive Fed tightening bets," Joel Frank, an analyst with market information supplier FX Empire.

The market now expects that the Federal Reserve has a 42.5 percent probability of raising another 75 basis points of the benchmark interest rate in September, much lower than 68 percent on Tuesday.

In late New York trading, the euro rose to 1.0306 dollars from 1.0208 dollars in the previous session, and the British pound increased to 1.2226 dollars from 1.2070 U.S. dollars in the previous session. The Australian dollar was up to 0.7085 dollar from 0.6956 dollar. The Australian dollar was up to 0.7085 dollar from 0.6956 dollar.

The U.S. dollar bought 132.90 Japanese yen, lower than 135.17 Japanese yen of the previous session. The U.S. dollar decreased to 0.9424 Swiss franc from 0.9540 Swiss franc, and it decreased to 1.2784 Canadian dollars from 1.2891 Canadian dollars.

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