Dollar Tumbles as Traders Anticipate Fed Rate Cuts Following Inflation Data

24.06.12 News

The dollar fell on Wednesday after data showed May’s consumer prices rose less than expected, fueling speculation that the Federal Reserve might cut interest rates as soon as September. Headline inflation was flat, and core prices increased by 0.2%, both below forecasts. This has boosted the probability of a September rate cut to 73%, up from 53% the previous day, and increased expectations of a second rate cut by year-end.

Share This Article

Choose Your Platform: Facebook Twitter Linkedin