U.S. dollar fell across the board on Tuesday after data showed that U.S. consumer prices increased moderately in July, leaving intact the case for a Federal Reserve interest-rate cut next month. Cryptocurrency bitcoin was about flat around $119,295, after climbing as high as $122,308.25 on Monday, taking it close to the all-time peak of $123,153.22 from mid-July.

The consumer price index rose 0.2 per cent last month after gaining 0.3 per cent in June, the Labor Department’s Bureau of Labor Statistics said on Tuesday. In the 12 months through July, the CPI advanced 2.7 per cent after rising 2.7 per cent in June. Economists polled by Reuters had forecast the CPI rising 0.2 per cent and increasing 2.8 per cent year-on-year.

Currency markets had been in a holding pattern earlier as expectation grew that a moderate reading on U.S. price pressures could cement bets for a Fed rate reduction next month, which increased after last week’s soft payrolls data.

The euro erased earlier losses against the buck to trade up 0.4 per cent at $1.16663. The greenback fell 0.3 per cent against the Japanese yen to trade at 147.74 yen.

Bullard told CNBC that he would accept the job “if we can protect the value of the dollar … that’ll give us lower interest rates over time; if we aim for low and stable inflation, (and) respect the independence of the institution under the Federal Reserve Act”.

Meanwhile, Sterling was up 0.5 per cent on the dollar at $1.3495 after data that showed Britain’s jobs market weakened further, albeit more slowly, while wage growth stayed strong – the latter underscoring why the Bank of England is so cautious about cutting interest rates.

The numbers ought not to cause the Bank of England to accelerate the speed of its rate cuts. The BoE cut rates only last week in a tight 5-4 vote.

The Australian dollar initially dipped after the Reserve Bank of Australia cut its interest rate by a quarter point, a move that was widely anticipated. The central bank cited a slowdown in inflation and a looser labor market, though it was cautious on prospects for further easing.

The greenback’s broad weakness, however, helped the Aussie recover ground to trade up 0.3 pr cent to $0.653 against the U.S. dollar. Currency markets largely ignored Trump’s decision to extend a pause in sharply higher tariffs on Chinese imports for another 90 days, as widely expected.

FAQs

Q1. Which is most popular cryptocurrency?
A1. The most popular cryptocurrency is Bitcoin.

Q2. How is Bitcoin performing?
A2. Cryptocurrency bitcoin was about flat around $119,295, after climbing as high as $122,308.25 on Monday, taking it close to the all-time peak of $123,153.22 from mid-July.