The dollar fell against all Group-of-10 peers after data showed US inflation slowed in May, supporting the case for the Federal Reserve to pause raising interest rates at a meeting this week following more than a year of increases. The British pound rallied after stronger-than-expected employment data.
The Bloomberg Dollar Spot Index fell 0.3%, extending an earlier decline. The index hit its lowest since mid-May.
Both the consumer price index and the core CPI -- which excludes food and energy -- decelerated on an annual basis, highlighting inflation's descent since peaking last year. At 4%, year-over-year CPI is now at its lowest level since March 2021, according to the Bureau of Labor Statistics.
GBP/USD rose 0.6% to 1.2585; Britain's labor market tightened unexpectedly in April, as wages shot up and unemployment fell.
The yield on the two-year notes jumped as much as 20 basis points to 4.84%, the highest since 2008.
AUD/USD gains 0.5% to 0.6787, up a fourth day; NZD/USD climb 0.7% to 0.6162. USD/JPY 0.2% lower at 139.29.
Source : Bloomberg
