FOREX-Dollar slides against major currencies after CPI report

The dollar fell on Wednesday after U.S. consumer prices increased less than expected in April, suggesting inflation has resumed a downward trend in the second quarter and that the Federal Reserve will cut interest rates in September. The consumer price index rose 0.3% last month after advancing 0.4% in March and February, the Labor Department's Bureau of Labor Statistics (BLS) said.

The dollar fell on Wednesday after U.S. consumer prices increased less than expected in April, suggesting inflation has resumed a downward trend in the second quarter and that the Federal Reserve will cut interest rates in September.

The consumer price index rose 0.3% last month after advancing 0.4% in March and February, the Labor Department's Bureau of Labor Statistics (BLS) said. In the 12 months through April, the CPI increased 3.4% after climbing 3.5% in March. Economists polled by Reuters had forecast the CPI gaining 0.4% on the month and advancing 3.4% year-on-year.

The dollar index, which measures the greenback against a basket of major currencies including the yen and the euro, fell 0.45% to 104.56, with the euro up 0.34% at $1.0855. Against the yen, the dollar weakened 0.72% at 155.28.