Dollar droops after benign inflation data; kiwi firm before RBNZ decision




On Wednesday, the dollar stayed on the defensive after falling against major currencies overnight. This decline was fueled by a mild U.S. producer prices report that strengthened expectations for Federal Reserve interest rate cuts later this year.

Risk-sensitive currencies continued to perform well following the unexpected easing of inflation, which supported equity markets. However, attention remained focused on upcoming U.S. consumer price index (CPI) data scheduled for later in the day.

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