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The global dollar rises driven by anxiety over US inflation data

The global dollar rises driven by anxiety over US inflation data

He global dollar rose this Thursday, as traders begin to focus on data from inflation of USA that will be published next week and in their implications for the politics of the Federal Reserve (Fed).

He dollar indexwhich measures the price of the greenback against a basket of currencies that includes the and in and to eurorose 0.17% to 105.70, having earlier hit a one-week high.

Next week the producer price index (PPI) and the consumer price index (CPI) in the United States, which traders will monitor closely for signs that inflation has resumed its downward trend toward the 2% target set by the Federal Reserve.

Meanwhile, the pound sterling fell after the Bank of England kept its benchmark interest rates at 5.25%, while the hard-line views of members of the Bank of Japan contributed to stopping the fall of the yen.

Sterling fell 0.3% to $1.2462, moving away from a three-week high of $1.2709 reached last week. The Bank of England left rates unchanged, but a second member of the Monetary Policy Committee was in favor of a cut and the governor Andrew Bailey He was “optimistic that things are going in the right direction.”

On the other hand, against the Japanese yen, the dollar has been slowly rising after falling 3.4% last week, its largest weekly percentage drop since early December 2022.

The yen was down 0.23% at 155.93 per dollar, with the Japanese currency briefly finding some support in the Bank of Japan’s summary of views released on Thursday, which showed board members were overwhelmingly hawkish. at its April policy meeting, with many calling for continued interest rate increases.

In the United States, the monetary policy meeting of the Federal Reserve last week and the downward surprises in the growth of the employment have caused markets to increase bets on two rate cuts this year. But there remains a gap between Japan’s ultra-low yields and those of the United States.

Masato KandaJapan’s top currency diplomat, reiterated the warning on Thursday that Tokyo is willing to take action in the foreign exchange market.

He Chinese yuan It operated stable at 7.2335 units per dollar, after it was learned that Chinese exports and imports grew again in April, after the contraction of the previous month.

Source: Ambito

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