In the Asian session on Thursday (April 6), the U.S. dollar index fell, with the latest price of the U.S. dollar at 101.86, a drop of 0.03%. Growth in the U.S. services sector slowed more than expected in March as demand cooled, while a measure of prices paid by service firms fell to its lowest level in nearly three years, giving the Federal Reserve a boost to its efforts to fight inflation.
Data released today showed that the ISM non-manufacturing index fell to 51.2 from 55.1. Consumers shifted from buying goods to spending, underpinning growth in the services sector. And as demand cools, service sector inflation continues to fall, but remains elevated. The services sector is at the heart of the fight against inflation right now because service prices tend to be more sticky and less responsive to rate hikes.
