2023-08-31 01:16:00
© Archyde.com. US dollar banknotes in a photo from Archyde.com archive.
SINGAPORE (Archyde.com) – It held at a 15-year high once morest the yen on Thursday on signs of persistent inflation in Europe, while the dollar came under pressure ahead of consumption, inflation and jobs data that might provide fresh evidence of slowing economic growth.
Data on Wednesday showed that the annual inflation rate in Germany and Spain barely slowed in August, contrary to expectations.
Dealers saw that this increases the chances of raising interest rates in Europe next month, and they bought the euro, which rose 0.4 percent to $1.0923.
The euro stabilized in early Asian trading and is now rising for three consecutive sessions once morest the dollar and five consecutive sessions once morest the yen, reaching a 15-year high of 159.76 yen.
The pound also rose with the euro, and retained its recent gains, recording $1.2713.
China’s PMI data, due later on Thursday, is expected to be weak, leading to little change in early offshore trading.
Also released on Thursday are European inflation data, as well as core personal consumption expenditures in the United States, which is the Federal Reserve’s preferred inflation measure.
US jobs data is due on Friday. The dollar came under pressure following data such as job vacancies and private sector jobs indicated weakness this week.
It has fallen 1 percent since the beginning of the week, as traders believe that the US interest rate hike may have stopped. The index is still up more than 1 percent in August.
The New Zealand dollar rose briefly above $0.60 and then hit $0.5953 on Thursday, while the Australian dollar settled at $0.6418. Both were severely affected by fears of an exacerbation of the Chinese economy’s slowdown, and are heading towards recording the worst monthly decline since February, by more than 3.5 percent.
The yen also performed poorly this month, declining 2.6 percent once morest the dollar, while investors expect interest rates to remain low in Japan and high in the United States.
And the yen stabilized with dealers’ concerns regarding the risk of official intervention from the state, and recorded in the latest transactions 146.07 for the dollar.
(Prepared by Doaa Muhammad for the Arabic Bulletin)
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