LONDON/SINGAPORE—The dollar fell to a two-month low on Thursday after data showed U.S. inflation slowed sharply in March, bolstering speculation the Federal Reserve’s rate hiking campaign is either already finished or will be by May.
As the dollar slipped, the euro rose to within a whisker of a one-year high, with traders betting the European Central Bank’s (ECB) fight against inflation still has a way to go.
Figures released on Wednesday showed U.S. consumer price index (CPI) inflation came at 5 percent year-on-year in March, down from 6 percent in February.
Core inflation—which strips out volatile food and energy prices—picked up to 5.6 percent, from 5.5 percent the previous month….