• Producer inflation in the US continued to decelerate in November. 
• US Dollar Index stays in daily range near 104.00 after the PPI data.

The Producer Price Index (PPI) for final demand in the US rose 0.9% on a yearly basis in November, down from the 1.2% increase recorded in October, the data published by the US Bureau of Labor Statistics revealed on Wednesday. This reading came in lower than the market expectation of 1%.  

The annual Core PPI increased 2% in the same period, below the October reading and analysts' estimate of 2.4% and 2.2%, respectively. On a monthly basis, the Core PPI was unchanged for the second consecutive month.

Market reaction

The US Dollar Index continues to fluctuate in a relatively tight daily channel slightly below 104.00 as markets await the Federal Reserve's (Fed) monetary policy announcements.