2023-06-30 16:34:43
The dollar index fell on Friday, following gains for two consecutive days, following economic data showed a slowdown in consumer spending, which raised some doubts regarding the prospects for further interest rate increases by the US Federal Reserve.
The US Commerce Department said on Friday that consumer spending rose 0.1% last month. April data was revised to 0.6% from 0.8% previously, to show an acceleration in spending.
The personal consumption expenditures price index rose 0.1% in May following rising 0.4% in April. In the 12 months through May, the personal consumption expenditures price index rose 3.8% following a 4.3% jump in April.
The Federal Reserve tracks personal consumption expenditures (PCE) price indices in order to achieve its goal of limiting inflation to within 2 percent.
The dollar index fell 0.377 percent to 102.920.
The index had risen 0.82%, during the previous two sessions, following the statements of Federal Reserve Chairman Jerome Powell, and strong economic data that reinforced market expectations that the US central bank would raise interest rates twice more, this year, while easing the belief that a rate cut might be possible by End of year.
The dollar index rose 0.4% during the quarter, and is heading for a rapid series of successive quarterly declines. In the first half of the year, the dollar fell 0.5%.
The rise of the Japanese yen
The Japanese yen rose 0.23%, when it briefly crossed the 145 mark once morest the dollar, at a new seven-month high of 145.07.
The dollar rose nearly 9% this quarter once morest the yen, which might be its strongest performance in a year.
The pound sterling achieved the best performance in developed market currencies in the second quarter, up 2.5%, while the dollar index, which is measured on the basis of a basket of six major currencies, rose 0.8% during the quarter, achieving its first quarterly gain since the third quarter of 2022. (Archyde.com)
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