Dollar Extends Falls after Weaker-than-expected US Producer Prices
The US dollar extended losses against the euro and yen on Thursday after yet another data showing softer-than-expected inflation in the world's largest economy, suggesting the Federal Reserve could increase the pace of its easing cycle.
The dollar dropped 0.95% against the yen to 143.29 yen , while the euro surged more than 1% to $1.1624 .
US producer prices last month rose just 0.1%, less than the expected 0.2% rise.
According to Reuters, the dollar has sunk to its lowest in three years as rapidly changing US trade policy unsettles markets and expectations build for Federal Reserve rate cuts, fuelling outflows from the world's biggest economy.
With the dollar down almost 10% against a basket of major currencies this year, other countries around the globe are grappling with unanticipated FX moves that are having a knock-on impact on economic growth and inflation.
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