U.S. dollar sinks across the board as inflation rise moderates

let atwWrapper,atwContainerWidth,atwSliderBox,atwTotalWidth; function initATWSlider() { atwWrapper = $('.relatedInstruments'); atwSliderBox = atwWrapper.find('.slider'); atwContainerWidth = atwWrapper.width(); atwTotalWidth = atwSliderBox.width(); if(window.domainId === '2' || window.domainId === '3'){ atwWrapper.find('.sliderRight').addClass('js-slider-prev'); atwWrapper.find('.sliderLeft').addClass('js-slider-next'); } else { atwWrapper.find('.sliderRight').addClass('js-slider-next'); atwWrapper.find('.sliderLeft').addClass('js-slider-prev'); } if(atwSliderBox.find('.instrumentBox').length > 6){ atwWrapper.find('.js-slider-next').fadeIn(600); } } function atwMoveRight() { atwWrapper.find('.js-slider-prev').fadeIn(150); $(".slider > :visible:first").hide(150) $(".slider > :visible:last").next().show(150); if(!$(".slider > :visible:last").next().find('.name')()){ atwWrapper.find('.js-slider-next').fadeOut(150); return; } } function atwMoveLeft() { atwWrapper.find('.js-slider-next').fadeIn(150); $(".slider > :visible:last").hide(150); $(".slider > :visible:first").prev().show(150); if(!$(".slider > :visible:first").prev().find('.name')()){ atwWrapper.find('.js-slider-prev').fadeOut(150); return; } } initATWSlider(); //update star icon on adding/removing instrument to/from specific watchlist atwWrapper.on('click', 'label.addRow', function() { let parent = $(this).parent(); let checkedPortfolio = false; parent.find('input[type=checkbox]').each(function () { if($(this).is(':checked')){ checkedPortfolio = true; } }); let closestStar = $(this).closest('.addToPortWrapper').find('.star'); if(checkedPortfolio){ closestStar.addClass('added'); }else{ closestStar.removeClass('added'); } }); //update star icon on creating new watchlist atwWrapper.find('.js-create-watchlist-portfolio').find('a.js-create').on('click',function () { let parent = $(this).parent(); let watchlistName = parent.find('input[type=text]').val(); if(!watchlistName){ return; } let star = $(this).closest('.addToPortWrapper').find('.star'); star.addClass('added'); }); //update star icon on adding new position atwWrapper.find('.js-create-holdings-portfolio').find('.js-submit').on('click',function () { let addPositionForm = $(this).closest('.addToPortfolioPop').find('.holdingsContent'); let amount = addPositionForm.find('.js-amount').val(); if(amount < 1){ return; } let star = $(this).closest('.addToPortWrapper').find('.star'); star.addClass('added'); }); atwWrapper.find('.instrumentBox').find('.shortInfo').on('click',function () { if(!window.ga){ return; } let pairId = $(this).parent().find('.js-add-to-portfolio').attr('data-pair-id'); let pairType = window.atwPairTypes[pairId]; window.ga('allSitesTracker.send', 'event', 'content', 'symbol link clicked', '', { "dimension147":"symbol_link_clicked", "dimension163":"click", "dimension148":"symbol", "dimension162":"content add to watchlist", "dimension161":"article page", "dimension142":"article", "dimension75":pairType, "dimension138":pairId, "dimension118":"2962739" }); window.open($(this).attr('data-href')); }); window.atwPairTypes = {"2111":"currency","8827":"futureCash"};

By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) - The dollar plummeted across the board on Tuesday after data showed that underlying U.S. consumer price inflation rose less than expected last month, reinforcing expectations that the Federal Reserve will slow the pace of its rate increases at the conclusion of its two-day meeting on Wednesday.

The greenback fell to a six-month low against the euro after the data. The euro hit $1.0666, the highest since June, and was last up 1.1% at $1.0648.

Against the yen, the dollar dropped to a one-week low of 134.67, and last changed hands at 134.94 yen, down 1.9%.

The dollar index, measuring the U.S. unit's value versus six major currencies, fell 1.1% to 103.82.

Data showed that headline U.S consumer prices rose modestly in November on an annual basis, amid declines in the cost of gasoline and used cars, leading to the smallest annual increase in inflation in nearly a year. In the 12 months through November, the CPI climbed 7.1%, the smallest gain since December 2021, and followed a 7.7% rise in October.

Excluding volatile food and energy components, the CPI increased 0.2% last month after rising 0.3% in October. In the 12 months through November, the so-called core CPI advanced 6.0% after increasing 6.3% in October.

"As a starting point, it's a positive signal that inflation has very gradually moved lower from very high levels to where central banks would like it to be," said Richard Flax, chief investment officer at Moneyfarm in London.

"In a longer-term perspective, it's shows that it is a long process but still it's another data point to suggest that inflation will begin to come down towards the targeted 2% and that should be positive for households and positive for risky assets."

The dollar also posted steep losses against commodity currencies.

The Australian dollar rose 1.9% against the greenback to US$0.6879. The New Zealand dollar gained 1.7% to US$0.6490. Against the Canadian dollar, the U.S. currency fell 0.5% to C$1.3555

The report supported widely-held expectations that the Fed will reduce the size of its rate increase when it announces its decision on Wednesday.

Fed funds futures have also priced in a lower terminal rate, or that level where the Fed stops hiking, of 4.8%, expected to hit in May. That was down from about 5.1% seen late last month.

"The consensus view is that the peak rate (is) maybe a little bit below 5% which we believe will be reached sometime in the second quarter of next year," Moneyfarm's Flax said.

"We would broadly subscribe to the view that markets are expecting a relatively quick shift from the Fed from having raised interest rates till now, to cutting rates over a relatively short time period. Our perspective is that the market is pricing in the possibility that the Fed stays at its peak rate for a little bit longer."

========================================================

Currency bid prices at 9:34AM (1434 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Dollar index 103.8100 104.9600 -1.08% 8.516% +105.0900 +103.5700

Euro/Dollar $1.0643 $1.0539 +0.99% -6.38% +$1.0673 +$1.0528

Dollar/Yen 134.9650 137.6450 -1.94% +17.25% +137.9650 +134.6700

Euro/Yen 143.65 145.04 -0.96% +10.23% +145.3400 +143.5800

Dollar/Swiss 0.9248 0.9363 -1.20% +1.41% +0.9374 +0.9232

Sterling/Dollar $1.2407 $1.2274 +1.09% -8.25% +$1.2442 +$1.2249

Dollar/Canadian 1.3555 1.3633 -0.58% +7.21% +1.3644 +1.3522

Aussie/Dollar $0.6879 $0.6747 +1.96% -5.37% +$0.6891 +$0.6730

Euro/Swiss 0.9842 0.9862 -0.20% -5.08% +0.9903 +0.9846

Euro/Sterling 0.8575 0.8586 -0.13% +2.08% +0.8604 +0.8563

NZ $0.6493 $0.6384 +1.71% -5.14% +$0.6502 +$0.6375

Dollar/Dollar

Dollar/Norway 9.7800 9.9875 -2.19% +10.89% +9.9875 +9.7685

Euro/Norway 10.4074 10.5061 -0.94% +3.94% +10.5353 +10.4055

Dollar/Sweden 10.1970 10.3318 -0.12% +13.08% +10.3422 +10.1719

Euro/Sweden 10.8472 10.8606 -0.12% +5.99% +10.9028 +10.8509