The dollar fell on Wednesday after U.S. consumer prices increased less than expected in April, suggesting inflation has resumed a downward trend in the second quarter and that the Federal Reserve will cut interest rates in September.
The consumer price index rose 0.3% last month after advancing 0.4% in March and February, the Labor Department's Bureau of Labor Statistics (BLS) said. In the 12 months through April, the CPI increased 3.4% after climbing 3.5% in March.
Economists polled by Reuters had forecast the CPI gaining 0.4% on the month and advancing 3.4% year-on-year. The dollar index , which measures the greenback against a basket of major currencies including the yen and the euro, fell 0.45% to 104.56, with the euro up 0.34% at $1.0855. Against the yen , the dollar weakened 0.72% at 155.28.
