The dollar index , which measures the U.S. currency against six major rivals, stood at 99.71 in early Asian hours, its lowest since April 2022.
"Markets are generally pretty pleasant with the lower inflation data, because lower inflation together with the still resilient labour market supports the narrative of a soft landing in the U.S. economy," said Carol Kong, currency strategist at Commonwealth Bank Of Australia in Sydney.
Ryan Brandham, head of global capital markets, North America, at Validus Risk Management, said the data on weekly jobless claims and producer prices are supportive of the soft landing.
Although the recent trend of lower inflation may be encouraging, it probably won't be sufficient to change the committee's decision."
The Japanese yen strengthened 0.23% to 137.71 per dollar and is on course for its best week against the dollar since January.
Persons:
Carol Kong, Ryan Brandham, Christopher Waller, he's, Michele Bullock, bitcoin
Organizations:
US, Federal Reserve, Commonwealth Bank Of Australia, Risk, Fed
Locations:
U.S, Sydney, North America, Ethereum