Dollar dips vs euro, yen after tame US inflation data

January 17, 2014 | 09:04
(0) user say
The dollar slipped against the euro and the yen Thursday after fresh data showed US consumer price inflation remained tame in December, holding below the Federal Reserve's target level.


(AFP/Noel Celis)

NEW YORK: The dollar slipped against the euro and the yen Thursday after fresh data showed US consumer price inflation remained tame in December, holding below the Federal Reserve's target level.

The euro bought $1.3615 around 2300 GMT, up from $1.3604 Wednesday.

The dollar fell to 104.37 yen from 104.55 yen, while the euro also fell against the Japanese currency, to 142.11 yen from 142.24 yen.

US consumer prices rose 0.3 per cent in December from November, and core prices -- stripping out volatile energy and food prices -- were up 0.1 per cent, the Labor Department reported Thursday,

The yearly rate was 1.5 per cent, and the core rate was up 1.7 per cent, below the Federal Reserve's 2.0 per cent target.

New claims for US unemployment insurance fell by 2,000 last week to 326,000, according to a separate Labor Department report that pointed to the slowly recovering jobs market.

First-time jobless claims fell to 326,000 in the week ending January 11, from 328,000 the prior week, the Labor Department said.

"Following the release of today's data, the dollar weakened against a number of its forex peers," FX360 analysts said in a market note.

The greenback fell to 0.9048 Swiss franc from 0.9085 late Wednesday.

But the dollar firmed against the British pound, which fell to $1.6354 from $1.6370.

AFP

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional