Dollar falls as consumer prices fall

The U.S. dollar fell on Thursday after data showed core consumer prices unexpectedly fell in June, which could increase the likelihood that the U.S. Federal Reserve will start cutting interest rates in the coming months.

The US Department of Labor’s Bureau of Labor Statistics said Thursday that the consumer price index slowed to 3 percent year-on-year in June, more than the 3.1 percent expected.

On a monthly basis, the consumer price index contracted, recording -0.1 percent, compared to expectations for growth of 0.1 percent in June.

The US core CPI, which excludes food and energy prices, also slowed to 3.3 percent on an annual basis and 0.1 percent on a monthly basis.

The dollar index fell 0.42 percent in the latest trading to 104.51, after falling to 104.38, its lowest level since June 12.

The euro hit $1.08935, its highest level since June 7.

The Japanese currency fell against the dollar by 0.49 percent to 160.88 yen.