Currencies: Dollar’s descent carries on as U.S. inflation data looms

The dollar faced fresh selling pressure on Wednesday, chiefly against the Japanese yen, which got a boost from economic growth data.

Investors were bracing for an update on U.S. consumer price inflation later, which could have a significant bearing on the pace of the Federal Reserve’s interest rate increases.

What are currencies doing?

The ICE U.S. Dollar Index DXY, -0.16% which measures the currency against six main rivals, fell 0.2% to 89.489, with the index having lost around 1% so far this week. The broader WSJ U.S. Dollar Index BUXX, -0.21% fell 0.3% to 83.50.

The greenback declined sharply against the Japanese yen USDJPY, -0.43%USDJPY, -0.43% dropping to ¥107.22 from ¥107.82 late Tuesday, and tapping a 15-month low of around ¥106.85.

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