NEW YORK, June 13 (Xinhua) -- The U.S. dollar weakened as data showed inflation has been cut in half from last year's peak, while a searing British jobs report lifted the pound.

The dollar index, which measures the greenback against six major peers, decreased 0.30 percent at 103.3370 in late trading.

The U.S. consumer price index (CPI) in May rose 4 percent from a year earlier, the U.S. Bureau of Labor Statistics said Tuesday, well below the recent peak of 9.1 percent last June and down from April's 4.9 percent increase.

U.S. Treasury yields fell immediately after the latest CPI report but quickly bounced back, reflecting little change in investors' interest rate expectations beyond this week's Federal Reserve (Fed) meeting.

It is expected that the Fed will skip a rate hike during its two-day meeting starting Tuesday, but the possibility of a resumption of rate hikes in July cannot be ruled out. U.S. stock futures extended gains on Tuesday.

In late New York trading, the euro increased to 1.0790 dollars from 1.0756 dollars in the previous session, and the British pound rose to 1.2602 dollars from 1.2505 U.S. dollars in the previous session.

Employment in the United Kingdom hit a record 33.1 million between February and April, with increases in both the numbers of employees and self-employed workers, Britain's Office for National Statistics said Tuesday.

The Canadian dollar strengthened to a four-month high against its U.S. counterpart on Tuesday as oil prices climbed and U.S. inflation data bolstered bets for a pause in the Fed's interest rate hiking campaign.

The U.S. dollar fell to 1.3311 Canadian dollars from 1.3371 Canadian dollars in late trading.

The U.S. dollar bought 140.2840 Japanese yen, higher than 139.5750 Japanese yen of the previous session. The U.S. dollar decreased to 0.9059 Swiss francs from 0.9096 Swiss francs. The U.S. dollar fell to 10.7138 Swedish Krona from 10.8117 Swedish Krona.