2022.05.1120:54:00UTC+00Dollar Turning In Mixed Performance Against Major Rivals

The U.S. dollar retreated after the Labor Department released the consumer inflation data Wednesday morning, but slowly edged higher subsequently amid expectations the Federal Reserve will raise rates aggressively to bring inflation down at a faster rate.

Data released by the Labor Department showed the annual rate of consumer price growth slowed by less than expected in April, coming in at 8.3%, easing from a 40-year high of 8.5% in March. Economists had expected the pace of growth to slow to 8.1%.

The annual rate of growth in core consumer prices also slowed to 6.2% in April from 6.5% in March, although the rate was expected to decelerate to 6%.

On a monthly basis, the Labor Department said its consumer price index rose by 0.3% in April after surging by 1.2% in March. Economists had expected prices to edge up by 0.2%.

Core consumer prices, which exclude food and energy prices, climbed by 0.6% in April after rising by 0.3% in March. Core prices were expected to increase by 0.4%.

The dollar index, which dropped to 103.37 from a high of 104.11, firmed to 104.05, gaining 0.12%.

Against the Euro, the dollar firmed to $1.0513 from $1.0532. The dollar is trading at $1.2244 against Pound Sterling, strengthening from $1.2316.

Against the Japanese currency, the dollar is weak, fetching 130.02 yen a dollar, compared with 130.45 yen a dollar Tuesday evening.

The dollar is flat at 0.6939 against the Aussie, after having weakened to 0.7054 post release of the inflation data.

The Swiss franc is stronger at 0.09938 a dollar, gaining from 0.9956. The Loonie has strengthened to C$1.2992 from C$1.3028, thanks to higher crude oil prices.