The US currency strengthened on speculation that the Fed will delay lowering rates further.
He dollar gained ground against euro and the pound sterling this Thursday, after a monetary policy official from the United States Federal Reserve (Fed) stated that it was in no hurry to cut interest rates, while operators were waiting for the data on Underlying inflation (PCE).
He and inmeanwhile, was operating stable at 151.42 units per dollar, after having touched 152 on Wednesday, its lowest level since 1990, before the Ministry of Finance of Japan suggested that they were willing to intervene to prevent further falls.
The euro was down 0.33% at $1.0792, a five-week low, and the pound was down 0.25% at $1.2609. He dollar index it gained 0.16% to 104.6, its highest level since mid-February.
In a speech delivered late Wednesday in the United States, Fed GovernorChristopher Wallerstated that recent disappointing inflation data confirms the wisdom of the US central bank refraining from cutting its short-term interest rate target.
Market expectations that the first rate cut will come at the Federal Reserve’s June meeting have diminished slightly. The current probability is 60%, compared to 67% last week at this time, according to the tool FedWatch from CME.
Traders now await U.S. core personal consumption spending inflation figures, which will be released on Friday, as well as the president’s appearance. Fed, Jerome Powell.
Focus on Japan’s finances
Japanese officials held a meeting on yen weakness on Wednesday and stepped up their verbal warnings, putting the market on alert for any signs that words are backed by action.
Japan intervened in the currency market three times in 2022, selling dollars to buy yen, first in September and again in October, when the yen was sliding towards a 32-year low of 152 per cent. dollar.
Meanwhile, the central bank of China established the fixation of yuan in the widest gap against the Reuters estimate in almost five months, as authorities step up efforts to prevent sharp declines in the currency. The yuan plummeted to a four-month low last Friday.
The yuan in mainland markets was trading practically stable at 7.2277 units per dollar, while the offshore yuan was trading at 7.2591 units per dollar.
Source: Ambito
