The US Bureau of Labor Statistics reported on Thursday that inflation in the US, as measured by the Consumer Price Index (CPI), declined to 7.7% on a yearly basis in October from 8% in September. This reading came in below the market forecast of 8%.

The Core CPI, which excludes volatile food and energy prices, fell to 6.3% from 6.6% on a yearly basis, compared to analysts' expectations of 6.5%. 

On a monthly basis, the CPI and the Core CPI arrived at 0.4% and 0.3% respectively, with both of these readings falling short of experts' projections.

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

Market reaction

The US Dollar (USD) came under heavy selling pressure with the initial reaction and the US Dollar Index was last seen losing nearly 1% on the day at 109.45.