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FILE PHOTO: US dollar bills
By Chuck Mikolajczak
NEW YORK, March 23 (Archyde.com) – The dollar rose for the fourth time in the past five sessions as economic data from the labor market helped bolster expectations that the U.S. Federal Reserve will be more aggressive in taking action. to curb inflation.
* Weekly initial jobless claims fell to 187,000 last week, the lowest level since September 1969 and below the forecast of 212,000.
* While new orders for durable goods unexpectedly fell in February due to slower shipments, demand for goods remained strong. Also, a measure of business activity for March rose to an eight-month high.
* Recent data and comments from Federal Reserve officials have strengthened views that the central bank will raise rates by more than 25 basis points at its next policy meeting in May. Expectations for a 50 basis point rise at that meeting are 70.5%, according to CME’s FedWatch tool, up from 32.9% a week ago.
* Federal Reserve Chairman Jerome Powell recently raised the possibility of raising interest rates by more than 25 basis points at upcoming meetings, a more aggressive stance echoed by other central bankers in their attempt to cool rising inflation, which has recently supported the dollar.
* On Thursday, Chicago Fed chief Charles Evans said he would be comfortable raising rates at each Fed meeting through next March by 25 basis points each time, but remains “open-minded” regarding a possible increase of 50 basis points.
* The dollar index rose 0.163%, with the euro dipping 0.06% to $1.0997.
* The yen fell once morest the dollar for the fifth session in a row, touching its lowest level since December 2015 at 122.40 units and the Bank of Japan is expected to maintain its expansionary monetary policy, in contrast to most other central banks in the world. world.
* The yen lost 0.92% once morest the dollar at 122.27 per dollar, while the British pound traded at $1.318, down 0.17% on the day.
(Reporting by Chuck Mikolajczak. Editing in Spanish by Juana Casas)