© Archyde.com. One hundred US dollar bill and 10,000 Japanese yen note in Tokyo. Photo from Archyde.com archive.
NEW YORK (Archyde.com) – The US dollar rose for a fourth straight session on Monday as investors awaited inflation data later this week that is likely to show that price pressures remain strong in the world’s largest economy, encouraging the Federal Reserve to maintain its policy. cash tight next year.
Meanwhile, the British Pound fell for the fourth consecutive session even following the Bank of England extended its support to the markets.
US data on Thursday is expected to show overall inflation was 8.1 percent on an annual basis in September, but down from 8.3 percent in August. Core inflation is also expected to rise to 6.5 percent from 6.3 percent previously.
Chicago Federal Reserve Chairman Charles Evans said on Monday that inflation is more stable than the US central bank initially thought. But he indicated that the bank might be able to curb inflation without a sharp rise in unemployment and without pushing the economy into recession.
It rose 0.3 percent to 113.14, surpassing its lowest level near 110 last week and returning to a 20-year high reached last month at 114.78. It fell 0.4 percent to $0.9705.
US data last Friday showed unemployment fell unexpectedly and the economy created more jobs than expected in September. This led to higher bond yields as traders increased expectations that the Federal Reserve would raise interest rates by 75 basis points in November at its fourth meeting.
In Britain, the Bank of England said it was ready to buy up to 10 billion pounds ($11.07 billion) of British bonds on Monday, double the previous limit.
But it fell for the fourth consecutive session despite the Bank of England’s move. In the most recent trading, it fell 0.2 percent to $1.1054, but was still well above a record low hit in September of $1.0327.
Geopolitical tensions and a rise also caused renewed tension over growth, prompting investors to return to the dollar.
It fell once morest the dollar following falling to a 24-year low of 145.90 once morest the dollar, a level that prompted the authorities to intervene to support it last month. The yen last traded at 145.72 to the dollar, up 0.2 percent.
With the reopening of Chinese markets following a week-long holiday, it reached at the opening 7.10 per dollar before declining to 7.1670.
The Australian dollar fell 1.01 percent to a two-and-a-half-year low of $0.6275 as the greenback rose.
(Prepared by Rehab Alaa and Muhammad Ali Farag for the Arab Bulletin – Editing by Mustafa Saleh)
