Dollar weakens further after soft US inflation data

The U.S. dollar fell further against the euro and yen on Thursday after new inflation data came in lower than expected, increasing expectations that the Federal Reserve could speed up rate cuts.

The euro rose more than 1% to $1.1624, while the dollar dropped 0.95% to 143.29 yen.

U.S. producer prices increased by 0.1% in the last month. Economists had expected a 0.2% rise.

Weaker inflation data has led markets to believe the Fed may move sooner or more aggressively in easing monetary policy.