Dollar Extends Losses After US Inflation Data

The dollar extends its losses to reach a three-week low after data from the U.S. Labor Department showed inflation eased in May. Headline inflation fell to 4.0% on-year in May from 4.9% in April while core inflation dropped to 5.3% from 5.5%, as expected by analysts in a WSJ survey. The data shows the Federal Reserve "needs to take the summer off now" with respect to monetary policy tightening, Zaye Capital Markets chief investment officer Naeem Aslam writes. Traders are already expecting "some kind of a pause" in rate rises or at least hints of it coming at Wednesday's Fed meeting, he says. The DXY dollar index falls to a low of 103.047 after the data from 103.303 beforehand.