21 March 2006, 17:08  U.S. Feb. PPI falls 1.4%, but core rises 0.3%

The dollar was modestly higher against its major rivals after a report showed U.S. wholesale prices registered the biggest decline in nearly three years. The Labor Department said the producer price index plunged 1.4% in February and energy prices fell 4.7%, also the biggest drop since April 2003. Economists expected the PPI to fall about 0.3%. The core producer price index - which excludes food and energy prices - rose 0.3%, stronger than the 0.1% gain expected by Wall Street economists. Earlier, the dollar found modest support following comments from Federal Reserve Chairman Ben Bernanke late Monday that were interpreted as a sign that further interest rate tightening is to be expected. At last check, the dollar was up 0.07% at 116.49 yen, while the euro was down 0.2% at $1.2137

© 1999-2024 Forex EuroClub
All rights reserved