The US dollar declined today, Wednesday, after Federal Reserve Chairman Jerome Powell said the US central bank might slow the pace of interest rate hikes in December.

Powell warned that the fight against inflation is not over yet, and key questions remain unanswered, including how much the high rates will ultimately need to rise and for how long.

The dollar index was at 106.41 in its latest trades, down 0.40% during the day. The euro rose 0.32 percent to $1.0364 and the dollar retreated 0.17 percent to 138.43 yen.

The US currency had earlier fallen on Wednesday after the national employment report showed that US private sector jobs increased far less than expected in November, indicating a decline in labor demand amid rising interest rates.
 

Other data also showed that job openings in the US declined in October.

The worst monthly performance in 10 years

Earlier today, the US dollar fell, nearing its largest monthly loss since late 2010.

Eurozone inflation in November showed the first monthly slowdown since June last year, with harmonized consumer prices rising by only 10% last month, compared to expectations of a 10.4% increase in November, and against final October reading of 10.6%.

It remains more than five times the European Central Bank's target rate. But after nearly two years of relentless inflation acceleration, markets can welcome any sign that the worst might be over.

European assets rose yesterday, Tuesday, after inflation eased in Spain and several major German states.

Frederic Ducrozet, who heads macroeconomic research at Pictet Wealth Management, wrote on Twitter: “Core inflation remains very high and exceeds the expectations of ECB staff”.