Dollar Loses Ground Against Major Rivals Ahead Of Key Economic Data

(RTTNews) - The U.S. dollar stayed mostly weak on Wednesday as traders awaited crucial U.S. inflation data, due later in the week.

Data on Q2 GDP is due on Thursday and PCE data - the Fed's favored measure of inflation - on Friday.

The report on personal income and spending in June, which includes readings on inflation said to be preferred by the Federal Reserve, could have a significant impact on the outlook for interest rates.

In U.S. economic news today, a report from the Commerce Department said new home sales fell by 0.6% to an annual rate of 617,000 in June after plummeting by 14.9% to a revised rate of 621,000 in May.

Economists had expected new home sales to surge by 3.4% to a rate of 640,000 from the 619,000 originally reported for the previous month.

With the unexpected decline, new home sales slumped to their lowest level since hitting an annual rate of 611,000 in November 2023.

The dollar index, which dropped to 104.12, recovered to 104.37, but still remained below the previous close.

Against the Euro, the dollar firmed to 1.0842, and against Pound Sterling it was flat at 1.2908. The dollar strengthened to 153.96 yen against the Japanese currency, and weakened to 0.6583 against the Aussie.

The dollar shed value against Swiss franc, dropping to CHF 0.8853 a unit.

Against the Loonie, the dollar firmed to C$ 1.3810 from C$ 1.3786. The Bank of Canada reduced its key policy rate further amid easing inflationary pressures.

The BoC said it has reduced its target for the overnight rate by 25 basis points to 4.5%, with the bank rate at 4.75% and the deposit rate at 4.5%.

The Canadian central bank said the decision to lower rates for the second straight meeting came as broad price pressures continue to ease and inflation is expected to move closer to 2%.