The dollar index retreated under 101 mark on Wednesday after US data showed softer-than-expected US inflation data. The consumer price index (CPI) rose 2.3% year-over-year in April—slightly below March’s 2.4% reading and market expectations. Core CPI, which excludes food and energy, increased by 2.8% annually, in line with both the previous figure and forecasts. On a monthly basis, headline and core CPI each rose 0.2%. April’s figures also mark a four-year low for annual headline inflation. However, easing tensions on US-China trade front reducing possibility of a recession could keep the greenback supported. The US and China agreed to reduce tariffs on each other after two days of negotiations in Geneva, Switzerland. The US lowered tariffs on Chinese imports to 30% from 145%, while China cut tariffs on US imports to 10% from 125%. The dollar index that measures the greenback against a basket of currencies is quoting at 100.73, down 0.08% on the day.

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