The U.S. dollar weakened against major global currencies on Thursday after fresh data showed inflation rising less than expected, easing pressure on financial markets and boosting rival currencies such as the euro.
According to data released by the U.S. Labor Department, consumer inflation increased 2.7% year over year in November, below the 3.1% rise forecast by economists surveyed by Reuters. The softer reading prompted traders to reassess expectations for future U.S. monetary policy.
Following the data, the dollar fell 0.14% against the Japanese yen to 155.43 and slipped 0.26% versus the Swiss franc to 0.793. The U.S. dollar index, which tracks the greenback against a basket of major currencies, declined 0.15% to 98.22.
Meanwhile, the euro edged higher after the European Central Bank (ECB) kept interest rates unchanged and offered a more optimistic outlook on the euro zone economy. Policymakers highlighted the region’s resilience despite ongoing global trade pressures.
The euro was last trading 0.12% higher at $1.1753 against the dollar.
In the UK, the British pound gained ground after the Bank of England narrowly voted to cut interest rates, revealing divisions among policymakers over how aggressively to support the economy amid slowing growth.
Currency markets remain sensitive to incoming inflation data and central bank signals, as investors weigh the timing and pace of future rate cuts across major economies.