The latest report shows that US consumer prices recorded a modest increase in January but inflation readings remained weak as the worrying pandemic spread continued to curb the growth of the labor and service sectors.
The Department of Labor reported a consumer price index (CPI) of 0.3% in January after rising 0.4% in December. In the 12 months to January, the CPI has increased 1.4% per annum. This reading is also in line with the forecast of economists at 0.3%.
The US dollar index traded at a low of 90,323 exchange rates against major currencies as of 10.15 p.m. Other currencies such as the Euro and GBP continued to record gains of 0.16% and 0.32% respectively.
The decline in the US dollar was driven by market confidence in financial and fiscal stimulus funds, strong corporate opinion and the development of the Covid-19 vaccine.
On the other hand, the market expects the United States to improve trade relations with other countries.
