He global dollar fell this Thursday against other important currencies, while the and in marked a new 34-year low as investors expect the US monetary policy meeting Bank of Japanwhich ends on Friday, is not aggressive enough to support the Japanese currency.
He euro rose 0.25% to $1.0724, moving away from a more than one-week high hit on Wednesday, while the pound gained 0.4% to $1.2511.
Investors were awaiting economic data. USA since the deflator of gross domestic product (GDP) prices core data for the first quarter, may provide indications for Friday’s release of the personal consumption expenditure (PCE) price index, the company’s preferred inflation gauge. Federal Reserve (Fed).
GDP increased at an annualized rate of 1.6% last quarter, the Department of Commerce Office of Economic Analysis in its advance estimate of first quarter GDP. Growth was largely supported by consumer spending.
Economists polled by Reuters had forecast GDP expansion of 2.4%, with estimates ranging between 1% and 3.1%. The economy grew at a rate of 3.4% in the fourth quarter. It is expanding at a pace faster than what U.S. central bank officials consider the non-inflationary growth rate of 1.8%.
Yen collapses and puts pressure on intervention
In Japanhe dollar It hit a 34-year high of 155.74 yen and then traded up 0.2% at 155.62 yen. Some market participants see the 155 level as a line that will drive policymakers. Tokyo to take action.
The euro hit a 16-year high of 166.98 yen and was later up 0.45% at 166.95 yen.
Analysts predict that the Bank of Japan meeting will end with a slightly restrictive outcome, with the central bank possibly limiting itself to announcing a modest reduction in its bond-buying plans.
Source: Ambito
