He dollar at a global level was quoted at the beginning of the day awaiting inflation data in USA and signals the direction of the monetary politics of the Federal Reserve (Fed); but it had a significant rebound after it was learned that prices rose more than expected during March and reached 34-year highs compared to the and in.
He global dollar It started on Wednesday with a price practically unchanged, but then the dollar index —which measures the price of the US currency in relation to a basket of six currencies— rose 1.04% to 105.18 units, reaching its highest since 1990 against the yen.
Meanwhile, the euro It lost 1.1%, to 1.074 dollars, while the note rose 0.8% against its Japanese pair, to 152.94 yen, after touching 152.99, its peak since the mid-1990s.
Likewise, the money markets valued the possibility of a reduction in the reference rate in June at 50%, according to the tool FedWatch of CME Group. The possibility of it being maintained had risen to 46%.
Inflation data in the United States
The rise in the dollar occurred after the latest inflation data from USA, which showed that the Consumer’s price index (CPI) rose 0.4% monthly in March, compared with the 0.3% advance expected by economists surveyed by Reuters. In the year-on-year comparison, inflation stood at 3.5% compared to the estimate of 3.4%.
Excluding the volatile food and energy components, the underlying figure rose 0.4% month-on-month in March, versus expectations for a 0.3% gain. Annually, it gained 3.8%, compared to the estimated increase of 3.7%.
After the CPI data, traders reduced bets that the Fed will cut rates in June to 17%, from 57% the day before, according to the tool FedWatch from CME. They now see a 66% chance of a cut at the September meeting, based on rate futures prices.
Fed funds futures have also reduced the number of 25 basis point rate cuts this year to less than two, from about three or four a few weeks ago.
Source: Ambito
