THE US dollar softened 0.44% to 96.8 largely owing to an improving risk appetite following the UK averting a “no-deal” exit and progressive trade talks. The market cheered after the Trump-Xi summit is now postponed to next month, signalling strong commitments to seal a deal by both parties.
The greenback was also weighed down by the slower headline and core inflation, triggering speculation that the Fed will keep rates unchanged. The former came in at 1.5% year-on-year (y-o-y) in February from 1.6% y-o-y in January while the latter eased to 2.1% y-o-y in February versus 2.2% y-o-y in January.