The dollar turns lower after data showed U.S. headline inflation accelerated less than forecast and core inflation unexpectedly eased in September, firming expectations for further interest-rate cuts.
Inflation rose to an annual rate of 3.0% in September from 2.9% in August. Economists in a WSJ survey had expected inflation to reach 3.1%. Core inflation eased to 3.0% from 3.1%, against expectations for it to remain unchanged.
The data cement bets that the Federal Reserve will deliver another 25 basis-point rate cut on Wednesday, with the market pricing in 99% chance of this, compared to 94% before the data, according to LSEG.
