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U.S. Dollar Remains Subdued After PPI Data

Investing.com - The U.S. dollar was flat on Friday as a slight uptick in core inflation failed to deter expectations that the Federal Reserve will cut rates at the end of July.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.1% to 96.6615 by 10:30 AM ET (14:30 GMT).

Fed Chairman Jerome Powell testified before Congress this week, telling lawmakers that the central bank is concerned about weak inflation and other uncertainties. The Fed is expected to cut rates by 25 basis points at its next policy meeting at the end of the month.

Meanwhile, core inflation data rose in June, pointing to a moderate gain in retail prices.

That follows data from Thursday that showed underlying consumer prices increased in June to an almost one-and-a-half year high. Still, signs of underlying inflation picking up have failed to diminish hope that the Fed will cut rates.

The dollar was lower against the Japanese yen, with USD/JPY falling 0.4% to 108.07. The euro was flat, with EUR/USD at 1.1247 and USD/CAD lost 0.2% to 1.3040, while GBP/USD gained 0.3% to 1.2549.

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