The U.S. dollar was down sharply Tuesday as tame U.S. inflation data affirmed expectations the Federal Reserve will continue to hold off raising interest rates. But a slump in the pound limited downside in the greenback ahead of a key U.K. vote.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.23% to 96.95.
The Labor Department said its core consumer price index slowed to 0.1% last month after edging up 0.2% in January. For the year through February the core consumer price index rose 2.1%, missing expectations for a 2.2% increase.