Dollar Drops for Second Day as Sluggish Inflation Fuels Concern
- Fed's preferred price gauge falls short of estimates
- Greenback weakens after reaching 2-month high this week
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The dollar declined for a second day after U.S. inflation and consumer spending figures trailed estimates, damping the outlook for the economy.
The greenback weakened against most of its major peers after a Commerce Department report showed a price index tied to consumer purchases decreased in September, the first drop since January. The inflation gauge is preferred by Federal Reserve policy makers and hasn’t exceeded their 2 percent goal since April 2012. American consumer sentiment rose this month less than forecast.