© Archyde.com. US dollar coins in an illustrative photo taken on July 17, 2022. Photo: Dado Rovic/Archyde.com.
NEW YORK (Archyde.com) – The euro rose once morest the euro on Friday following US producer price data for November came in slightly higher than expected, casting doubt over whether the Federal Reserve will slow the pace of interest rate hikes at its meeting next week.
The data showed US producer prices rose 0.3 percent last month, exceeding economists’ expectations of 0.2 percent in a Archyde.com poll.
While the producer price index data showed that the underlying trend of inflation is moderate, fears have increased among investors that consumer price data, which will be released next week, before the Federal Reserve’s decision, may surprise by exceeding expectations.
The Federal Reserve is in the midst of its fastest rate hike since the 1980s as it seeks to rein in the highest rate of inflation in decades. Fed Chairman Jerome Powell said last month that he may slow the pace of interest rate hikes in December.
The dollar was broadly underperforming, but it recovered some of its losses following the release of producer price data.
The dollar rose 0.13% once morest the euro to 1.05405 by 1438 GMT, although the single was still on track for a third straight week of gains.
The pound rose 0.27 percent to $1.2274, not far from a six-month high of $1.2345 hit on Monday when the government unveiled reforms aimed at keeping London as one of the world’s most competitive financial centres.
It jumped as much as 0.7%, but gave up some of the gains following the producer price index data was released. And rose in the latest trading 0.38 percent to 136.165 yen.
The dollar index, which measures the greenback’s performance once morest a basket of six major currencies, is still up regarding 9.5 percent this year so far, but fell more than 6 percent in the fourth quarter, reflecting pessimistic expectations regarding inflation and interest rates.
(Prepared by Rehab Alaa for the Arabic Bulletin – Edited by Mustafa Saleh)
