June US inflation data meeting expectations weakens the Dollar Index, boosting major currencies against the greenback.
The Dollar Index fell to 100.40 following the release of June US Consumer Price Index data, which aligned with market expectations. The softer inflation print reduced demand for the dollar, leading to gains in the euro, pound, yen, and Australian dollar.
Prior to the release, markets anticipated a modest decline in inflation, which materialized. The index had shown resilience in recent sessions but faced pressure as traders adjusted positions based on the latest economic indicators.
Analysts suggest the Dollar Index could rebound from current levels, though near-term sentiment remains cautious amid broader macroeconomic uncertainties.