# US dollar stumbles, drops to more than one-year low as inflation eases in June

> The US dollar fell to its lowest level in more than a year after June inflation data showed core CPI rising 0.2% month on month, below expectations. Annual core CPI slowed to 4.8%, under the expected 5% and the smallest annual increase in over two years.

- Date: 2023-07-12 · published 2023-07-12T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/9977-us-dollar-stumbles-drops-to-more-than-one-year-low-as-inflation-eases-in-june
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Cooling US inflation lowers expectations for further Fed tightening, which weakens the dollar. A weaker dollar typically supports dollar-denominated grain and oilseed prices and improves export competitiveness.

## Read by commodity

- DXY: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DXY | 2023-07-12 | 1 | -0.9% | -3.5 | Softer-than-expected June core CPI released July 12 drove the dollar to a 1+ year low, directly explaining the -0.92% one-day drop ending that date. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2021-03-11 | [Dollar drops to one-week low as inflation fears fade; ECB in focus \| Financial Post](https://feedsoft.ai/events/48345-dollar-drops-to-one-week-low-as-inflation-fears-fade-ecb-in-focus-financial-post.md) | -0.4% | -0.3% |
| DXY | 2022-12-13 | [U.S. dollar tumbles across the board as inflation rise eases](https://feedsoft.ai/events/38150-u-s-dollar-tumbles-across-the-board-as-inflation-rise-eases.md) | -0.2% | -2.1% |
| DXY | 2024-08-29 | [USD/CAD drops to near 1.3460 as US Dollar edges lower ahead of inflation test — Octa](https://feedsoft.ai/events/29036-usd-cad-drops-to-near-1-3460-as-us-dollar-edges-lower-ahead-of-inflation-test.md) | +0.5% | -0.7% |
| DXY | 2026-01-01 | [Dollar falls versus yen after smaller-than-expected rise in US inflation, euro eases](https://feedsoft.ai/events/21690-dollar-falls-versus-yen-after-smaller-than-expected-rise-in-us-inflation-euro.md) | +0.3% | -1.5% |
| DXY | 2020-08-31 | [Dollar hits two-year low, fourth month of losses on Fed inflation mandate](https://feedsoft.ai/events/51844-dollar-hits-two-year-low-fourth-month-of-losses-on-fed-inflation-mandate.md) | +0.1% | +1.4% |

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/dollar-slides-ahead-us-inflation-data-sterling-hits-15-month-peak-2023-07-12/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.