Market News
US dollar crumbles as inflation cools; euro hits nearly four-year peak - REUTERS
Summary
- Euro jumps along with safe-haven Swiss franc and yen
- Geopolitical risks in focus
- Trump says he will send out letters with trade deal terms
- US PPI data shows cooling inflation in May
- US rate futures pricing in two cuts this year
NEW YORK, June 12 (Reuters) - The dollar slumped on Thursday, as weaker-than-expected U.S. inflation data for May suggested that the Federal Reserve could resume cutting interest rates sooner rather than later, while the safe-haven yen and Swiss franc benefited from rising Mideast tension.
The euro, on the other hand, soared to its highest level in almost four years against the dollar. The greenback also fell to a two-month low versus the Swiss franc and a roughly one-week trough against the yen.
Data showed that the U.S. Producer Price Index (PPI) increased less than expected in May, curbed by lower costs for services like air fares, a report that undermined the dollar. Wednesday's data also indicated cooling inflation, with a lower-than-expected rise in the U.S. Consumer Price Index (CPI).
