2023-12-01 07:14:32
US dollar
The dollar fell in Friday trading, while the euro rose following suffering significant losses overnight, as traders evaluated data that showed a decline in inflation, which increased expectations that raising interest rates had reached their peak and that central banks would soon begin lowering them.
The dollar index, which measures the performance of the US currency once morest a basket of six competing currencies, fell 0.116 percent to 103.33 following recording its weakest monthly performance in a year in November, despite rising 0.6 percent overnight.
Thursday’s data showed that consumer spending in the United States rose moderately in October, while the annual increase in inflation was the smallest in more than two and a half years.
The personal consumption expenditures price index rose three percent in October, on an annual basis, representing a decline from a reading of 3.4 percent over three months, but the readings are still higher than the US Central Bank’s target of two percent.
On Thursday, US Federal Reserve policymakers indicated that interest rate hikes were likely over, but they left the door open to further monetary tightening if progress in curbing inflation stagnated.
Investors’ focus turns to comments from Federal Reserve Chairman Jerome Powell later Friday to scrutinize every word in order to chart the course of the interest rate.
In Europe, data showed yesterday, Thursday, that inflation in the euro zone fell more than expected for the third month in a row in November, which increased bets on a rate cut at the beginning of the spring.
The data led to a decrease in the euro by 0.7 percent on Thursday, and it rose in the latest trading by 0.21 percent, recording $1.0909. But the single European currency is down 0.2 percent this week.
The British pound rose in recent trading by 0.14 percent, recording $1.264.
The Japanese yen increased 0.06 percent to 148.09 per dollar and is on its way to record a third consecutive week of gains once morest the dollar, moving away from the lowest level in nearly 33 years that it touched in mid-November, which is 151.92.
The Australian dollar rose 0.06 percent to $0.661, and the New Zealand dollar rose 0.13 percent to $0.616.
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