The U.S. dollar fell further Thursday after data showed U.S. wholesale inflation cooling more than expected in June.
The ICE U.S. Dollar Index
DXY,
a measure of the currency against a basket of six major rivals, fell to 99.94 on Thursday, on pace to the lowest level since April 20, 2022, according to Dow Jones Market Data.
The greenback is also on pace to record the sixth consecutive day of decline, posting its longest losing streak since September 2021.
Meanwhile, the euro
EURUSD,
continued to advance against the dollar on Thursday, pushing the EUR/USD pair up by 0.6% to its highest level since February last year. The British pound
GBPUSD,
also gained further versus the greenback, boosting the GBP/USD pair higher by almost 1% to the highest since April 2022. The Australian Dollar/USD pair rose 1.3% Thursday.
“With recent jobs data having cooled and inflation now close to target, the Dollar is undergoing a heavy repricing,” James Harte, analyst at TickMill Group, wrote in a Thursday note.
“We recently heard from some Fed officials who shared the view that tightening was almost done, and this is certainly a theme which traders will be monitoring closely at the July FOMC. For now, the near-term USD outlook remains bearish with further losses likely through the end of the week,” Harte wrote.
U.S. producer price index rose a meek 0.1% in June, while economists polled by the Wall Street Journal had forecast a 0.2% increase in the producer price index. The increase in wholesale prices over the past 12 months slowed to 0.1% from 1.1% in the prior month.
Such data comes one day after the consumer-price index for June showed the rate of inflation slowing to the lowest level since 2021.
U.S. stocks rose Thursday, with the Dow Jones Industrial Average
DJIA,
up 0.2% and the S&P 500
SPX,
up 0.6%. The Nasdaq Composite
COMP,
gained 1.2%, according to FactSet data.
This post was originally published on Market Watch
