The dollar in the world was pressured by the Fed and inflation in the United States

The dollar fell on Wednesday after it was learned that consumer prices rose less than expected in Maybut cut losses after the updated forecasts of tinterest handles of the officials of the Federal Reserve showed that probably there is a single rate cut this year.

The general consumer price index (CPI) remained stable during the month, and below expectations of an increase of 0.1%. Core prices rose 0.2%, also less than economists’ forecasts for a 0.3% rise.

The data reinforced expectations that the US central bank will make two 25 basis point rate cuts in 2024, the first of them probably in September. But forecasts by Federal Reserve officials later showed only one cut this year.

“It’s clear that Fed members have not been swayed by today’s CPI report.or have been reluctant to change their forecasts at the last minute,” said Adam Button, chief currency analyst at ForexLive in Toronto.

In March, Fed policymakers had forecast three rate cuts this year. On Wednesday, the central bank also pushed back its outlook for the start of rate cuts until perhaps December.

Fed Chairman Jerome Powell said after the meeting that the interest rate forecast is “quite conservative” and may not be confirmed by upcoming data, so it is subject to review. But he was not as direct about the possibility of a cut in September as some investors had hoped.

The dollar index fell 0.5%, to 104.73 units, after having previously fallen to 104.25. It had hit a four-week high of 105.46 on Tuesday.

The euro gained 0.63%, to $1.0807, and reached $1.0852 in the session. On Tuesday it had fallen to $1.07195, the lowest level since May 2.

The Bank of Japan also meets this weekand is expected to keep interest rates steady and consider offering clearer guidance on how it plans to reduce its huge balance sheet.

The dollar fell 0.17% to 156.8 yenafter reaching a high of 157.40 yen on Tuesday.