US dollar declines on soft inflation data

The US dollar fell against most major currencies as the country's soft inflation data continued to weigh on the market.

In late New York trading on Thursday, the euro rose to $1.1799 from $1.1789, and the British pound climbed to $1.3441 from $1.3368, Xinhua news agency reported.

The Australian dollar increased to $0.7676 from $0.7624.

The US dollar bought 112.12 Japanese yen, lower than 112.83 yen of the previous session. The US dollar rose to 0.9871 Swiss franc from 0.9865 Swiss franc, and it edged down to 1.2732 Canadian dollars from 1.2844 Canadian dollars.

The US Labor Department said on Wednesday that the so-called core consumer price index increased 0.1 per cent on a seasonally adjusted basis in November from the prior month and 1.7 per cent from a year earlier, missing market consensus of a 1.8-per cent gain.

Analysts said the soft inflation data dampened investors' hope that the Federal Reserve might raise interest rates in a quicker pace next year.

The dollar index, which measures the greenback against six major peers, was down 0.01 per cent at 93.418 in late trading on Thursday.

--IANS

pgh/