US Dollar Retreats from Ten-Week High as ECB Outlook Weighs on Euro

The US Dollar Index (DXY) retreated to 99.60 after earlier climbing to a three-month high, driven by profit-taking among traders. This pullback occurred despite the release of the US Core Producer Price Index (PPI) for May, which rose 0.4% month-over-month and held steady at 4.9% year-over-year.

The Euro faced additional headwinds from the European Central Bank's monetary policy outlook, contributing to the dollar's initial strength before the reversal. Market participants locked in gains following the dollar's recent rally to ten-week highs.