Dollar continues to drop ahead of US inflation data

The US dollar fell on Tuesday, to deepen its losses for the third straight day, as demand slowed due to hopes about a quick global economic recovery from the coronavirus impact, which comes ahead of key US inflation data.

The dollar index fell 0.2% to 96.37 points, after opening at 96.54, with an intraday high of 96.70.

The greenback fell 0.15% yesterday, posting its second straight daily loss, on weak demand.

The dollar index also lost 0.5% during the past week, to post its third daily loss in a row, due to upbeat economic data in most parts of the world, which raised hopes about a quick global economic recovery from the coronavirus pandemic.

Investors are anticipating key economic data releases today on the US inflation rates during June.

At 12:30 GMT, the US economy will release the CPI reading, with forecasts to rise by 0.6% in June vs. 0.1% in May, and the core reading is expected to rise by 0.1% vs. -0.1% in May .