CPI rises sharply this quarter, this is likely to be a dollar negative, particularly when other parts of the world are set to see an economic rebound in coming months,” said Petr Krpata, chief EMEA FX and IR strategist at ING.
“Under these circumstances, cyclical FX should benefit.
The dollar also shed much of the week’s gain against the yen, falling back to 108.55 from Wednesday’s top of 109.07.