Dollar suffers biggest plunge since 2009 as CPI smacks Fed bets

A slower pace of rate hikes could curb the dollar's rally this year which has weakened its Group-of-10 currency peers

The dollar had its worst day since 2009 after Thursday’s US inflation report surprised traders with slower growth in consumer prices, driving speculation that the Federal Reserve will ease the pace of its interest-rate increases.

The Bloomberg Dollar Spot Index fell 2 per cent after a key inflation gauge cooled in October by more than expected, the biggest drop since 2009. 

The consumer price report offered hope that the fastest price gains in decades are ebbing and giving Federal Reserve officials room to slow down amid an aggressive tightening campaign. Traders dialed back expectations to how high they expect rates to go