The U.S dollar, on Thursday, February 16, ended an 11-day winning streak, sliding against the euro, yen and the basket of currencies that measures its broader strength after hitting its highest in a month a day earlier.
The dollar index was down 0.4 percent .DXY in early European trade, falling to 100.81 from a peak of 101.76 on Wednesday after the better-than-expected U.S. inflation numbers and retail sales data.
Traders price in a 31 percent chance of a rate increase at the Fed’s March meeting, up from 13 percent on Monday, according to the CME Group’s FedWatch Tool.
Expectations Trump would deliver tax reforms and rises in infrastructure spending that would reflate the U.S. economy and spur the Fed to more action were at the heart of a surge for the dollar in the month after his election on Nov. 8.
However, the dollar has struggled since, due at least in part to concerns over Trump’s protectionist views and signs he may favor a weaker currency.
The dollar came off a 2-1/2-week high of 114.95 JPY= marked on Wednesday against the yen, touching a low of 113.73. It was last down almost half a percent at 113.66 yen.
The euro edged up over 0.3 percent at $1.0632, recovering from a five-week trough of $1.052 EUR= touched on Wednesday, Reuters reports.
