The dollar resumed its downward path on Wednesday as weaker-than-expected consumer price inflation reinforced the idea that US interest rates may have peaked.

Core consumer prices, which exclude food and energy costs, rose by 0.2 per cent in July, less than the 0.3 per cent expected by most economists. The data appeared to confirm the Federal Reserve’s recent observation that slowing growth was starting to have an impact on inflation, and supported the central bank’s decision last week to leave rates on hold.