Investing.com – The dollar pared back earlier gains on Wednesday after inflation data supported the Federal Reserve increasing rates at a gradual pace.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.27% to 96.88 as of 11:15 AM ET (16:15 GMT).
Data on Wednesday showed that the annual core consumer price index (CPI) rose 2.1%, which was less than expected.
Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories. The central bank usually tries to aim for 2% core inflation or less.
Sterling increased on news that the European Union and the UK have reached a draft agreement on Brexit. A statement from British Prime Minister Theresa May is expected at 12:00 PM ET (17:00 GMT).