• US annual PPI in February declined at a faster pace than expected.
• US Dollar clings to strong daily gains at around 104.70.

The Producer Price Index (PPI) for final demand in the US declined to 4.6% on a yearly basis in February from 5.7% in January. the data published by the US Bureau of Labor Statistics revealed on Wednesday. This reading came in much lower than the market expectation of 5.4%.

The annual Core PPI dropped to 4.4% in the same period from 5.4%, compared to analysts' estimate of 5.2%. On a monthly basis, the Core PPI came in at 0%.

Market reaction

The US Dollar Index preserves its bullish momentum after this data and was last seen rising 1% on the day at 104.70.