2024-01-18 07:36:35
US dollar dollar
The US dollar moved near the highest level in a month once morest major currencies, Thursday, following strong US retail sales data reinforced expectations that the US Federal Reserve will not accelerate the pace of interest rate cuts.
Price movements
The dollar index, which measures the performance of the US currency once morest a basket of six competing currencies, fell slightly to 103.29 in Asian followingnoon trading.
The dollar index reached 103.69 yesterday, Wednesday, for the first time since December 13.
According to CME’s Fed Watch data, traders reduced the odds of the US Central Bank reducing interest rates for the first time in March to 61 percent from 65.1 percent on Tuesday.
The market is still anticipating potential cuts of 150 basis points by the end of the year, even as Federal Reserve officials, including Governor Christopher Waller, this week backed away from expectations of rapid monetary policy easing.
Tony Sycamore, an analyst at IG, said: “Pricing in the US interest market now seems more reasonable… The dollar has rebounded enough in 2024 for now.”
The dollar rose to 148.525 yen during the overnight hours for the first time since the end of November, but fell by 0.08 percent in the latest intraday trading at 148.04 yen.
The euro rose 0.09 percent to $1.08915.
It rebounded from a five-week low of $1.08445 recorded yesterday, Wednesday, supported by comments published by Bloomberg by European Central Bank President Christine Lagarde that there is likely to be majority support among European Central officials for lowering interest rates in the summer, that is, in Later market expectations for a cut in the spring.
The pound sterling stabilized at $1.26815 following a rise yesterday, Wednesday, following data showed an unexpected acceleration in inflation in December, which reinforced expectations that the Bank of England would be slower in reducing interest rates than its counterparts.
The rise of the British currency by 0.31 percent during the overnight hours ended a three-day decline once morest the dollar, and limited yesterday Wednesday’s gains for the dollar index, whose basket of competing currencies includes the pound sterling.
The Australian dollar also stabilized at 0.65545 US dollars, following recovering from sharp losses that reached 0.04 percent to 0.65255 US dollars earlier when the data showed an unexpected decline in employment in December, which strengthened the belief that interest rates had reached their peak in the country.
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