The dollar remained under pressure after President Trump repeated his calls for interest-rate cuts following Tuesday’s lower-than-expected U.S. inflation data.
Trump again accused Federal Reserve Chair Jerome Powell of being “too late” to lower rates on his Truth Social platform. Inflation eased to 2.3% on year in April against the 2.4% expected by economists in a WSJ survey.
At first glance, the dollar’s fall after the data seems logical given the prospect of faster rate cuts, Commerzbank’s Thu Lan Nguyen says in a note.
However, it could also reflect the fact that Trump will feel vindicated given the lack of tariff effect in the data, she said. The DXY dollar index fell 0.1% to 100.895.