The U.S. dollar lost ground against its major rivals on Wednesday after data showed the nation's inflation slowed down in July.
The U.S. Labor Department said its consumer price index climbed by 0.5% in July after jumping by 0.9% in June. The increase in consumer prices, which came following the biggest jump in thirteen years in the previous month, matched economist estimates.
Compared to the same month a year ago, consumer prices in July were up by 5.4%, unchanged from the annual rate of growth seen in June. The pace of growth was expected to dip to 5.3%.
The annual rate of growth in core prices slowed to 4.3% in July from 4.5% in June, matching economist estimates.
After the U.S. Senate approved a $1.2 trillion infrastructure plan on Tuesday, Senate Democrats further voted to proceed with $3.5 trillion budget plan aimed at expansion of social programs.
The dollar index dropped to a low of 92.80 in the European session and edged up to 92.90 subsequently, but was still down nearly 0.2% from the previous close.
Against the Euro, the dollar weakened to 1.1742 from 1.1706.
The Pound Sterling firmed nearly 0.2% against the dollar, fetching $1.3865 a unit, compared to $1.3840 a unit Tuesday evening.
The dollar is quoting at 110.43 yen, as against the previous close of 110.58 yen.
The AUD/USD is at 0.7373 after closing at 0.7350 on Tuesday.
The Swiss franc is at 0.9218 a dollar, down from previous close of 0.9202, while the Loonie is little changed at 1.2506 a dollar.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2181046/
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