The dollar is losing ground against all of its major rivals Wednesday afternoon, after this morning's inflation data showed a larger than expected increase. The report has cemented the belief among investors that the Federal Reserve will likely hike interest rates at its March meeting.
Consumer prices in the U.S. increased by more than anticipated in the month of January, according to a report released by the Labor Department on Wednesday. The Labor Department said its consumer price index climbed by 0.5 percent in January after edging up by a revised 0.2 percent in December.
Economists had expected consumer prices to rise by 0.3 percent compared to the 0.1 percent uptick originally reported for the previous month.
Retail sales in the U.S. unexpectedly decreased in the month of January, the Commerce Department revealed in a report on Wednesday. The Commerce Department said retail sales fell by 0.3 percent in January compared to economist estimates for a 0.2 percent uptick in sales.
A report released by the Commerce Department on Wednesday showed business inventories in the U.S. rose by slightly more than anticipated in the month of December. The Commerce Department said business inventories climbed by 0.4 percent in December, matching the increase seen in November. Economists had expected inventories to rise by 0.3 percent.
The dollar has dropped to a 1-week low of $1.2430 against the Euro Wednesday afternoon, from an early high of $1.2274.
Euro area continued its expansion at the end of 2017, as previously estimated, taking the full-year growth to a decade-high. Gross domestic product climbed 0.6 percent sequentially, following third quarter's 0.7 percent expansion. The rate came in line with the preliminary flash estimate published on January 30.
The German economy grew as expected at the end of 2017, largely driven by foreign demand, while inflation continued to ease in January, data from Destatis revealed Wednesday. Gross domestic product grew 0.6 percent sequentially in the fourth quarter, in line with expectations, but slightly slower than the revised 0.7 percent expansion seen in the third quarter.
Germany's consumer price inflation slowed as estimated in January, final data from Destatis showed Wednesday. The consumer price index rose 1.6 percent year-on-year after 1.7 percent increase in December, final data from Destatis showed Wednesday. The rate came in line with preliminary estimate.
The buck has fallen to a 4-session low of $1.3985 against the pound sterling this afternoon, from a high of $1.3799 this morning.
The greenback has tumbled to a 3-month low of Y107 against the Japanese Yen this afternoon, from a high of Y107.901 this morning.
Japan's gross domestic product added a seasonally adjusted 0.1 percent on quarter in the fourth quarter of 2017, the Cabinet Office said in Wednesday's preliminary reading. That was shy of expectations for a gain of 0.2 percent and down from 0.6 percent in the third quarter.