LONDON—A sliding dollar came under more pressure on Thursday, as traders took surprisingly slow U.S. inflation as a signal U.S. interest rate rises will be all but finished by month’s end.
U.S. data on Wednesday showed inflation slowed a lot faster than expected last month. That gave rise to the biggest one-day dollar sell-off in five months and left the greenback at its lowest in over a year against the euro and sterling, and at its lowest in over eight years against the Swiss franc.
U.S. core inflation came in at 0.2 percent in June against market expectations for 0.3 percent. Headline annual CPI fell to 3 percent and has been dropping since hitting a peak at 9.6 percent a year earlier….