NEW YORK (Reuters) – The dollar sank to a new two-month low on Wednesday after data showed the rise in U.S. consumer prices eased in June, suggesting that the Federal Reserve may just have to raise interest rates just one more time this year.
The dollar index dropped as low as 101.08, the lowest in two months, after the data, and was last down 0.5% at 101.11.
Core U.S. consumer prices rose just 0.2% in June, compared with forecasts for a gain of 0.3%. On an annual basis, U.S. CPI advanced 4.8%, lower than market expectations for a 5% increase.
(Reporting by Gertrude Chavez-Dreyfuss; Editing by Toby Chopra)
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