The US Dollar (USD) has been struggling to shake off the selling pressure on Thursday after having registered heavy losses against its major rivals on Wednesday. March inflation data from the United States seems to be the primary driver behind the broad-based USD weakness with markets forecasting a strong probability of one or more Federal Reserve (Fed) rate cuts in the second half of the year.   

The US Bureau of Labor Statistics (BLS) reported on Wednesday that Consumer Price Index (CPI) declined to 5% on a yearly basis in March from 6% in February. This reading came in below the market expectation of 5.2%. Furthermore, the Core CPI, which excludes volatile food and energy prices, rose by 0.4% on a monthly basis, down from a 0.5% increase recorded in February.