U.S. dollar banknotes are displayed in this illustration taken, February 14, 2022.
U.S. dollar banknotes are displayed in this illustration taken, February 14, 2022. Reuters / DADO RUVIC

The dollar slid on Tuesday after U.S. inflation data showed that consumer prices rose 8.5% in March compared to a year ago, coming in slightly hotter than analysts expected.

The data for March showed the biggest monthly rise in consumer prices in 40 years, reinforcing expectations that the U.S. Federal Reserve will stay the course on aggressive monetary tightening.

The dollar index fell 0.075%, with the euro down 0.04% to $1.0879.

Economists polled by Reuters forecast the U.S. consumer price index (CPI) on Tuesday would post an 8.4% year-over-year increase in March. Separately, they also saw the probability of a recession next year at 40%.