US dollar stable following largest decline in 3 weeks

Tokyo: The US dollar stabilized on Wednesday after recording its largest drop in more than three weeks overnight. The decline followed lower than e...

Tokyo: The US dollar stabilized on Wednesday after recording its largest drop in more than three weeks overnight.

The decline followed lower-than-expected US consumer inflation data, bolstering the case for Federal Reserve easing just as global trade tensions cool, coinciding with a de-escalation in the US-China trade tensions.

The US Dollar Index, which measures the currency against six major peers, held steady at 100.94 after falling 0.8% on Tuesday.

On Monday, the index jumped 1%, reaching its highest level in a month, supported by optimism that the easing of trade tensions between the US and China would avert a potential global recession.

Against the Japanese yen, the dollar was stable at 147.45 yen, while the euro and the British pound showed little change, trading at $1.1188 and $1.3311, respectively.