2023-12-12 21:28:05
New York (awp/afp) – The dollar lost ground on Tuesday once morest the euro while awaiting a monetary decision from the American central bank (Fed) and new forecasts for changes in interest rates.
The Turkish lira stabilized following sliding to a historic low on Tuesday once morest the greenback.
Around 9:00 p.m. GMT, the dollar fell 0.31% to 1.0798 dollars per euro.
Inflation slowed slightly in November in the United States to stand at 3.1% year-on-year, compared to 3.2% a month earlier, mainly due to the fall in energy prices, according to the CPI index released Tuesday by the Labor Department.
A drop, however, considered modest: “The hopes of an imminent reduction in Fed rates will probably be attenuated by” the data on inflation, comments Jason Schenker, analyst at Prestige Economics.
Although it seems that the policy of the American Federal Reserve (Fed) “is working, inflation is far from its objective of 2%”, he continues. “This report reduces the need for further rate hikes, but high inflation might keep pressure on the Fed to keep interest rates high for an extended period.”
Overall, “these figures are expected to do little to change recent Fed communications that underlying inflation remains too high to consider rate cuts in the near future,” economists also believe. from Oxford Economics in a note.
The American central bank must communicate its monetary policy decision on Wednesday which should be a status quo on rates. The Monetary Committee will also publish projections of rate developments.
To contain rising prices, the central bank has raised interest rates 11 times since March 2022, bringing them to their highest level in 22 years, in a range of 5.25 to 5.50%.
On Thursday, the Swiss National Bank (SNB), the European Central Bank (ECB) and the Bank of England (BoE) will follow the Fed’s lead and deliver their final monetary policy decision of the year.
Elsewhere, the Turkish lira stabilized at a historic low once morest the dollar on Tuesday, at 28.99 pounds following having exceeded 29 pounds to the dollar.
This is a “continuation of the gradual depreciation” of the currency, which since the end of September has been regularly beating its historic low once morest the greenback, says Tatha Ghose, analyst at Commerzbank.
Tuesday price Monday price 9:00 p.m. GMT 10:00 p.m. GMT EUR/USD 1.0798 1.0765 EUR/JPY 157.12 157.34 EUR/CHF 0.9451 0.9456 EUR/GBP 0.8590 0.8573 USD/JPY 145 .51 146.16 USD/CHF 0.8753 0.8784 GBP/USD 1.2569 1.2555
afp/rp
1702422906
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