Dollar Index Falls 0.18% to 101.43 as May PCE Softens Fed Hike Bets
Updated
Updated · CNBC · Jun 25
Dollar Index Falls 0.18% to 101.43 as May PCE Softens Fed Hike Bets
3 articles · Updated · CNBC · Jun 25
Summary
The dollar slipped to 101.43 on Thursday, ending a three-session rise after U.S. data nudged down expectations for Federal Reserve rate hikes.
May PCE inflation rose 4.1% year over year but matched forecasts, while the monthly reading came in at 0.4% versus a 0.5% estimate; markets cut the odds of a July hike to 30% from 34.2%.
Consumer spending still climbed 0.7% in May, GDP was revised up to a 2.1% annualized pace, and weekly jobless claims fell to 215,000, showing growth remained firm even as rate expectations eased.
The euro gained 0.08% to $1.1366 and sterling rose 0.23% to $1.3194, while the yen stayed under pressure at 161.79 per dollar near its weakest level since 1986.
The pullback followed a dollar rally that had pushed gold briefly below $4,000 an ounce and bitcoin under $60,000 as traders had built up expectations for tighter Fed policy.