On Wednesday, the dollar index fell below the 101 mark following the release of softer-than-expected U.S. inflation data. The Consumer Price Index (CPI) for April showed a 2.3% year-over-year increase, slightly under March’s 2.4% and market predictions. Core CPI, excluding food and energy, rose by 2.8% annually, matching both the previous figure and forecasts. Monthly, both headline and core CPI increased by 0.2%. The annual headline inflation reached a four-year low in April.

Easing tensions on the U.S.-China trade front, reducing recession possibilities, may support the dollar. After two days of negotiations in Geneva, Switzerland, the U.S. and China agreed to reduce tariffs. The U.S. decreased tariffs on Chinese imports from 145% to 30%, while China reduced tariffs on U.S. imports from 125% to 10%.

The dollar index, measuring the greenback against a basket of currencies, is currently at 100.73, a 0.08% decrease for the day.