Dollar's Fall Shows Market's Reaction to Inflation Miss: Chart

The dollar declined to the lowest level in five months versus the yen, also crossing the 200-day moving average, after U.S. inflation unexpectedly fell in March for the first time since February 2016, raising doubts about the global reflation trade and the prospect of accelerated Federal Reserve interest-rate hikes. What’s more, the so-called core consumer-price index, which excludes volatile food and energy prices, fell for the first time since 2010. With bond and equity markets closed for a holiday on Friday, the greenback is one of the few ways to gauge reaction to the data miss.

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