U.S. Dollar Drops Before CPI

The dollar declined versus most of its 16 major peers after a U.S. central bank official cautioned against excessive optimism over the economy.

The Bloomberg U.S. Dollar Index fell after Federal Reserve Bank of St. Louis President James Bullard said yesterday policy makers should be careful in changing course based solely on their economic forecasts. Economists predict a report today will show gains in U.S. consumer prices slowed last month. The yen gained as Japanese stocks slid after a government official said Prime Minister Shinzo Abe hasn’t given instructions to lower the nation’s corporate tax.

“Dollar-yen is looking heavy,” said Kengo Suzuki, the chief currency strategist in Tokyo at Mizuho Securities Co., a unit of Japan’s third-biggest bank. “As Bullard has said in his statement, U.S. economic data would be a key focus.”


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