08:57 AM EDT, 05/31/2024 (MT Newswires) -- The US dollar fell widely in early North American trade Friday after a decline in the core PCE price index suggested that the US disinflation trend likely resumed in April.

The core PCE price index rose 0.2% MoM last month, down from 0.3% previously and below expectations for 0.3%. The annual measure of the core PCE price index held steady at 2.8%, in line with expectations.

Meanwhile, the headline PCE price index rose 0.3% MoM in April, unchanged from March and in line with expectations.

Interest rates implied by Federal Funds futures were little changed in the wake of the report but the two-year US government bond yield fell sharply to 4.91%, from 4.95% previously, weighing on the US dollar complex.