* Dollar index falls to 1-1/2-month low, breaks 100-day MA
* Euro rises to 2-week peak vs dollar amid hopes for Brexit deal
* Fed rate hikes seen despite CPI's rising less than forecast
* ECB, BOE leave rates changed; Turkey cenbank uncorks rate hike
* Graphic: World FX rates in 2018
(Updates market action to late U.S. trading)
By Richard Leong
NEW YORK, Sept 13 (Reuters) - The dollar fell to a near
1-1/2-month low against a group of currencies on Thursday after data
showed U.S. consumer prices increased less than expected in August,
changing traders' views on an acceleration in domestic inflation.
Signs of reduced trade tensions between China and the United
States after Washington reached out to Beijing on Wednesday to restart
trade talks also pressured the greenback.
"The safe-haven demand for the dollar has diminished the past
two days on positive trade developments between U.S. and China,"
said Peter Ng, senior currency trader at Silicon Valley Bank in Santa
Clara, California. "Today's CPI miss has added downward pressure
on the dollar."
The U.S. Labor Department said its Consumer Price Index, the
government's broadest inflation gauge, rose 0.2 percent in August,
less than the 0.3 percent increase projected by analysts polled by
Despite the CPI miss, traders did not change their view the
Federal Reserve would raise key short-term interest rates by a quarter
point to 2.00 percent-2.25 percent at its next policy meeting in two
weeks. They also anticipated the Fed would increase rates for a fourth
time this year in December.
An index that tracks the dollar against six major rivals
broke below its 100-day moving average, which is seen as a bearish
signal, to a near six-week low at 94.428. At 3:14 p.m. (1914 GMT), it
was down 0.26 percent at 94.551.
The greenback weakened for a fourth straight day against the euro
and sterling on hopes that Britain and the European Union would reach
trade terms before Britain leaves the economic bloc next March.
The common currency rose to a two-week peak against the dollar, at
$1.17010, before subsiding to $1.16900, up 0.54 percent on the day,
EBS data showed.
The pound hit a six-week high versus the dollar, at $1.3124. It
was last at $1.3105, up 0.44 percent.
Both the European Central Bank and Bank of England, as expected,
left interest rates unchanged on Thursday.
The ECB signaled it was on track to dial back its bond purchases
later this year, while the BOE highlighted concerns from Brexit.
Turkey's central bank raised its benchmark rate by 625 basis
points on Thursday in a bid to shore up the lira and soothe investor
concern about President Tayyip Erdogan's influence on monetary policy.
Turkey's lira rallied 3.99 percent at 66.0921 per dollar
. It had hit a record low of 7.2400 in mid-August, raising investor
expectations for the central bank to tighten monetary policy and
arrest the currency's slide. ========================================================
Currency bid prices at 3:16PM (1916 GMT)
Description RIC Last U.S. Close Pct Change
YTD Pct High Bid Low Bid
Euro/Dollar EUR= $1.1685 $1.1624 +0.52%
-2.59% +1.1701 +1.1609
Dollar/Yen JPY= 111.9400 111.2500 +0.62%
-0.65% +111.9500 +111.1700
Euro/Yen EURJPY= 130.87 129.34 +1.18%
-3.19% +130.8800 +129.2700
Dollar/Swiss CHF= 0.9656 0.9704 -0.49%
-0.89% +0.9708 +0.9657
Sterling/Dollar GBP= 1.3105 1.3046 +0.45%
-3.01% +1.3121 +1.3027
Dollar/Canadian CAD= 1.2992 1.2995 -0.02%
+3.30% +1.3025 +1.2975
Australian/Doll AUD= 0.7193 0.7168 +0.35%
-7.79% +0.7229 +0.7166
Euro/Swiss EURCHF= 1.1288 1.1284 +0.04%
-3.43% +1.1316 +1.1263
Euro/Sterling EURGBP= 0.8919 0.8911 +0.09%
+0.41% +0.8931 +0.8894
NZ Dollar/Dolar NZD= 0.6568 0.6562 +0.09%
-7.31% +0.6589 +0.6544
Dollar/Norway NOK= 8.2171 8.2579 -0.49%
+0.12% +8.2642 +8.1954
Euro/Norway EURNOK= 9.6064 9.6012 +0.05%
-2.45% +9.6120 +9.5642
Dollar/Sweden SEK= 8.9554 8.9798 +0.30%
+9.19% +8.9947 +8.9290
Euro/Sweden EURSEK= 10.4710 10.4400 +0.30%
+6.42% +10.4773 +10.4319
(Additional reporting by Saikat Chatterjee in London, Shinichi
Saoshiro in Tokyo; Editing by Meredith Mazzilli and Leslie Adler)
((firstname.lastname@example.org; +1 646 223 6313; Reuters