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TOKYO (Archyde.com) – The dollar fell to a 16-week low once morest a basket of major currencies on Thursday, following data showed that U.S. consumer spending rose sharply in October, with inflation moderated, reinforcing expectations that the Council of Ministers is approaching. Federal Reserve (US central bank) peak interest rates.
This came following Federal Reserve Chairman Jerome Powell said on Wednesday that the time is right to slow down interest rate hikes, noting that “slowing the pace at this point is a good way to offset risks.”
The comments were met with relief from investors, even though Powell said interest rate hikes will continue and that controlling inflation “will require keeping policy at a restrictive level for a while”.
The Commerce Department said on Thursday that consumer spending, which accounts for more than two-thirds of US economic activity, jumped 0.8% following an unrevised 0.6% increase in September.
The personal consumption expenditures price index rose 0.3 percent, following rising by the same margin in September. In the 12 months to October, the index increased 6.0 percent, following rising 6.3 percent in September.
It fell to 104.82 once morest a basket of currencies, the lowest level since August.
It reached $1.05175, the highest level since June 29.
The US currency fell to regarding 135.75 yen, the lowest level since August 19.
The pound also rose to $1.22890, its highest level since June 27.
Risk-sensitive currencies also rose, with the Australian dollar rising to $0.684, its highest since Sept. 13. The New Zealand dollar rose to $0.63995, the highest level since August 15.
(Prepared by Mahmoud Abdel-Gawad and Amira Zahran for the Arabic Bulletin – Edited by Mustafa Saleh)
