The US Bureau of Labor Statistics reported on Tuesday that inflation in the US, as measured by the Consumer Price Index (CPI), declined to 7.1% on a yearly basis in November from 7.7% in October. This reading came in below the market forecast of 7.3%.

Follow our live coverage of the market reaction to US inflation data.

Further details of the publication revealed that the annual Core CPI, which excludes volatile food and energy prices, declined to 6% from 6.3% in October. The monthly Core CPI came in at 0.2%, compared to analysts' estimate of 0.3%.

Market reaction

With the initial reaction, the US Dollar came under heavy selling pressure. The US Dollar Index was last seen trading at its lowest level since late June at 103.95, losing nearly 1% on a daily basis.