* Dollar index hits lowest since Nov. after U.S. CPI, retail
* Dollar reverses vs yen, drops as much as 1 pct
* Dollar falls more than 1 percent vs commodity-linked
(Updates to U.S. market open, new throughout, changes dateline,
By Dion Rabouin
NEW YORK, June 14 The dollar fell to its lowest
since the day after the U.S. election against a basket of major
currencies following the release of weaker-than-expected U.S.
CPI and retail sales data on Wednesday.
U.S. retail sales in May recorded their biggest drop in 16
months and consumer prices unexpectedly fell month over month,
suggesting inflation pressures are moderating, which could
impact further Federal Reserve interest rate increases this
The euro rose to its highest since Nov. 9 against the
dollar, hitting $1.1295.
Against the yen, the greenback fell by more than 1 percent
following the data release to touch 108.95 yen, its lowest since
"The numbers cast serious, serious doubt on whether there
will be another hike this year," said Greg Anderson, global head
of foreign exchange strategy at BMO Capital Markets in New York.
The dollar index was last down 0.6 percent at 96.437,
after earlier touching its lowest since Nov. 9 at 96.323.
Investors were still expecting the Federal Open Markets
Committee to increase U.S. overnight interest rates later on
Wednesday at the conclusion of its June policy meeting.
Fed funds futures prices showed traders saw a more than 95
percent chance of a rates rise to between 1.00 and 1.25 percent.
The likelihood of a rate hike in September has significantly
weakened, however, with futures rates showing just a 17 percent
chance of an increase, down from 28 percent before the data
release on Wednesday, according to CME Group's FedWatch.
"It won't stop the Fed from hiking interest rates later
today, but it increases the downside risks to our forecast that
there will be a further two rate hikes in the second half of
this year," said Paul Ashworth, chief U.S. economist at Capital
Economics in Toronto.
The Australian dollar rose 1.3 percent to its highest
against its U.S. counterpart since April 3. New Zealand's dollar
rose 1.25 percent to its highest since Feb. 7.
The Canadian dollar rose 0.45 percent, hitting its highest
against the U.S. dollar since Feb. 27. The loonie was on pace
for its best week since January 2016, up 2.5 percent since
Worries about global growth and weakness in markets for the
commodities they produce has weighed on commodity-linked
currencies like the Aussie, kiwi and loonie.
But after comments by Bank of Canada Deputy Governor Carolyn
Wilkins on Monday flipped markets towards an earlier rise in
borrowing rates there, traders and analysts said short bets
against commodity-linked currencies looked exposed.
(Additional reporting by Lisa Twaronite in Tokyo; Editing by
Gareth Jones and Meredith Mazzilli)