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Dollar index bounces off 1-week trough, moves higher By Investing.com

Dollar regains some ground as market digest U.S. inflation data

Investing.com – The dollar moved higher against the other major currencies on Monday, as markets digested disappointing U.S. inflation data released on Friday, while geopolitical tensions between the U.S. and North Korea began to ease.

gained 0.49% to 109.72, off Friday’s two-month low of 108.73, while climbed 0.50% to 0.9664.

Demand for the safe-haven yen and Swissie eased after U.S. Secretary of Defense Jim Mattis and Secretary of State Rex Tillerson both wrote that the U.S. administration would continue to seek diplomatic resolutions with Pyongyang.

In a commentary published in the Wall Street Journal on Sunday, the two men said that “the U.S. has no interest in regime change or accelerated reunification of Korea.”

In Japan, data on Monday showed that the country’s economy grew by in the second quarter or in annualized terms, which was higher than the 2.5% expected.

Elsewhere, slipped 0.15% to 1.1804, while fell 0.23% to 1.2979.

The greenback weakened broadly on Friday after the U.S. Commerce Department said consumer prices rose less-than-expected last month. A separate report released a day earlier showed that producer price inflation and its core reading both unexpectedly declined in July.

The weak data was seen as lowering chances that the Federal Reserve will stick to its plans for a third interest rate hike this year.

The Australian and New Zealand dollars were weaker, with down 0.28% at 0.7873 and with slid 0.33% to 0.7295.

Earlier Monday, Statistics New Zealand said retail sales increased by in the second quarter, beating expectations for a 0.7% rise.

A separate report showed that China’s industrial production rose in July, below expectations for an increase of 7.2%.

and also rose less-than-expected last month.

The weak data fueled fresh concerns over a slowdown in the world’s second largest economy. China is Australia’s biggest export partner and New Zealand’s second biggest export partner.

Meanwhile, rose 0.21% to 1.2706.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.25% at 93.22, off Friday’s one-week low of 92.83.

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