
The dollar index (DXY00) Tuesday fell by -0.79%. The dollar retreated Tuesday after the US Apr CPI was weaker-than-expected and showed the smallest increase in 4 years, a dovish factor for Fed policy. Also, Tuesday’s stock rally curbed liquidity demand for the dollar.
US Apr CPI rose +2.3% y/y, slightly weaker than expectations of +2.4% y/y and the smallest year-on-year increase in 4 years. Apr CPI ex-food and energy rose +2.8% y/y, unchanged from March and right on expectations.