Dollar rises after US inflation data by Reuters

© Archyde.com. A bank employee counts US dollar banknotes in Hanoi – Photo from Archyde.com archive.

NEW YORK/LONDON (Archyde.com) – The dollar rose once morest most major currencies in volatile trading on Friday, tracking an increase in Treasury yields, following US data showed a slowdown in the rise of a measure of inflation, but it likely won’t be enough to stop the US central bank from keeping interest rates higher. longer.

The personal consumption expenditures price index rose 0.1 percent last month, following rising 0.4 percent in October. In the 12 months through November, that index increased 5.5 percent, following rising 6.1 percent in October.

Excluding volatile food and energy prices, the personal consumption expenditures price index increased 0.2 percent following a 0.3 percent increase in October. The so-called core personal consumption expenditures price index rose 4.7 percent year-on-year in November, following rising 5 percent in October. The US central bank follows the personal consumption expenditures price indices in order to make monetary policy decisions.

The dollar rose in midday trading 0.5 percent once morest the yen to 133 yen. But the Japanese currency is on track to record a weekly decline of 2.7 percent following the Bank of Japan revised basic policy for the bond market this week.

It witnessed little change once morest the dollar, recording $1.0598. Against it, the dollar rose 0.1 percent to 0.9235 francs.

In a tough year for global markets, the dollar rose nearly 9 percent as the US central bank raised interest rates sharply to curb inflation, drawing investors back into the country’s fixed income assets.

But it has fallen more than 8 percent since its 20-year peak in September, following a sharp slowdown in US inflation raised hopes that the central bank would soon end its tightening cycle.

On Friday, the dollar index increased by 0.1 percent, recording 104.42.

(Prepared by Salma Najm for the Arabic Bulletin – Edited by Mostafa Saleh)

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