Dollar Narrows Its Losses After Inflation Data

The U.S. Dollar (USD) declined on Wednesday, following the release of the January inflation data that showed that the Consumer Price Index (CPI) declined to 0.3% on a monthly basis last month, while the core CPI decreased to 1.4% from 1.6% in December.

The Dollar Index (DXY), which measures the greenback’s performance against a basket of six major international currencies, is currently at 90.39, down by 0.06% for the day.

Following the release of the inflation rate reading, the DXY fell as low as 90.25, while its highest level today was at 90.53 earlier in the session, noting that it closed Tuesday at 90.44.

Markets are anticipating remarks by the U.S. Federal Reserve Chair Jerome Powell later tonight, which could impact the movement of the Dollar as well as the stock market.