US dollar slightly lower against yen, euro, after producer price data
The U.S. dollar was marginally down against the yen and euro on Wednesday after data showed producer prices unexpectedly fell in August, cementing expectations that the Federal Reserve will resume cutting interest rates later this month.
The dollar was slightly down against the yen at 147.37 following the data, while the euro turned marginally higher at $1.1714 . Before the data, the U.S. currency was trading moderately up on the day against both currencies.
A Labor Department report showed the Producer Price Index for final demand fell 0.1% on a monthly basis, after a downwardly revised 0.7% jump in July. Economists polled by Reuters had forecast the PPI would rise 0.3% after a previously reported 0.9% surge in July.
But the PPI advanced 2.6% on an annual basis in August, compared with a 3.3% gain expected by economists polled by Reuters.
Following the data, fed funds futures are pricing in a 90% chance of a standard 25-basis-point cut this month and a 10% chance of 50-bp rate decline, according to the CME's FedWatch. That was at 93% and 7%, respectively, late on Tuesday.
Source : Reuters
