FOREX-Dollar slides after tamer-than-expected U.S. inflation data

FOREX-Dollar slides after tamer-than-expected U.S. inflation data
FOREX-Dollar slides after tamer-than-expected U.S. inflation data

* U.S. core, headline inflation slows in August * Fed may hold off on tapering -analyst * Euro, Swiss franc rise vs dollar (Adds new comment, byline, U.S. data, FX table, updates prices) By Gertrude Chavez-Dreyfuss NEW YORK, Sept 14 (Reuters) – The dollar fell on Tuesday after data showed a less-than-expected rise in U.S. inflation last month, creating uncertainty as to the timing of the Federal Reserve’s tapering of asset purchases. Several Fed officials have suggested that the U.S. central bank could reduce buying debt securities by the end of the year. The Labor Department said on Tuesday its Consumer Price Index excluding the volatile food and energy components edged up just 0.1% last month. That was the smallest gain since February and followed a 0.3% rise in July. The so-called core CPI increased 4.0% on a year-on-year basis after advancing 4.3% in July. “We didn’t get a really high number on CPI, the fact that they came in just below expectations gives the Fed the chance to punt any taper implementation announcement from September to November,” said Thomas Hayes, managing member at Great Hill Capital LLC in New York. “The inflation numbers confirmed that the Fed can push it off a little bit more, ’cause there were worries if inflation numbers came in really hot then the Fed’s hand might be forced to move sooner rather than later, in spite of recent employment numbers being weak,” he added. The dollar index fell 0.2% to 92.432, following the data, further retreating from a more than two-week high hit on Monday. The euro rose 0.2% against the dollar to $1.1827. Against the Swiss franc, the dollar dropped 0.3% to 0.92 francs. ======================================================== Currency bid prices at 8:47AM (1247 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index 92.3980 92.6260 -0.23% 2.686% +92.6650 +92.3670 Euro/Dollar $1.1835 $1.1810 +0.21% -3.13% +$1.1841 +$1.1801 Dollar/Yen 109.9650 110.0050 -0.02% +6.44% +110.1550 +109.9400 Euro/Yen 130.14 129.91 +0.18% +2.54% +130.1900 +129.8600 Dollar/Swiss 0.9196 0.9224 -0.25% +4.00% +0.9228 +0.9193 Sterling/Dollar $1.3892 $1.3841 +0.38% +1.69% +$1.3901 +$1.3831 Dollar/Canadian 1.2615 1.2642 -0.21% -0.93% +1.2664 +1.2602 Aussie/Dollar $0.7355 $0.7373 -0.28% -4.43% +$0.7373 +$0.7324 Euro/Swiss 1.0882 1.0888 -0.06% +0.69% +1.0904 +1.0882 Euro/Sterling 0.8517 0.8530 -0.15% -4.70% +0.8539 +0.8511 NZ $0.7137 $0.7118 +0.26% -0.62% +$0.7151 +$0.7103 Dollar/Dollar Dollar/Norway 8.5870 8.6480 -0.68% +0.03% +8.6490 +8.5775 Euro/Norway 10.1622 10.2062 -0.43% -2.91% +10.2210 +10.1527 Dollar/Sweden 8.5591 8.6076 -0.24% +4.43% +8.6145 +8.5580 Euro/Sweden 10.1316 10.1560 -0.24% +0.55% +10.1740 +10.1300 (Reporting by Gertrude Chavez-Dreyfuss in New Yor; Additional reporting by Shreyashi Sanyal in Bengalaru Editing by Timothy Heritage and Nick Zieminski)

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