Dollar skids as soft U.S. inflation weighs; Fed meeting looms next week

 Dollar skids as soft U.S. inflation weighs; Fed meeting looms next week

U.S. One dollar banknotes are seen in front of displayed stock graph in this illustration taken, February 8, 2021. REUTERS/Dado Ruvic/Illustration

  • Dollar hits four-week low vs yen
  • Weak Chinese data pressures yuan
  • Aussie dollar falls to two-week low, but recovers
  • Focus on Fed next week

NEW YORK, Sept 15 (Reuters) – The dollar slumped against major currencies on Wednesday after softer-than-expected U.S. inflation data released on Tuesday eased short-term expectations about tapering of asset purchases from the Federal Reserve.

The dollar index last stood at 92.514, down about 0.2% from Tuesday, when it dropped following the inflation data but recovered on haven demand as stocks slid on Wall Street.

But the dollar trimmed losses after positive data showing import prices fell unexpectedly in August and a higher-than-expected reading for the New York Fed’s business survey. read more

These reports offset figures showing U.S. manufacturing…

Read full article…www.reuters.com