He global dollar this day increased as a result of an increase in imports in USA, after Wednesday’s significant drop due to a slowdown in inflation made a rate cut more likely by the Federal Reserve (Fed).
He dollar indexwhich compares the greenback to a basket of six major currencies, gained 0.27% to 104.47 units, after falling 0.75% on Wednesday, as investors raised their bets on rate cuts. the Fed, now anticipating two for the end of the year.
Inflation in the United States slowed to 0.3% in April from the previous month, below 0.4% in March and expectations of another 0.4%, data released Wednesday showed. The core year-on-year inflationwhich excludes volatile food and energy prices, fell to 3.6%, its lowest level in three years.
The dollar fell 1% against the and in in the previous session, after the data was released, but rose 0.28% on Thursday, to 155.30 units, after having fallen to 153.6 before the publication of weak growth figures in Japan.
He euro It hit a two-month high of $1.0895, before falling 0.14% to $1.0867. Sterling hit its highest level in a month at $1.2675 before declining 0.13% to $1.1268.
The increase in import prices
The rise of the currency was linked to the fact that the prices of imports in USA increased by 0.9% in April, a rebound that made the markets fear that the fight of the Federal Reserve for containing the inflation is not finished and could delay plans to cut interest rates.
The increase in the import price index was the largest in a month since it rose 2.9% in March 2022, the Bureau of Labor Statistics. These prices last fell on a monthly basis in December, according to the report.
“The market is, of course, very sensitive to inflation signals wherever they come from, and today’s import price series was much stronger than expected,” he said. Brain Daingerfield from NatWest Markets in Stamford, Connecticut.
He added: “The Fed wants to see consistent progress on more than one point. The CPI number we got yesterday was not as bad as feared.” But I don’t think it was enough to materially change the market’s outlook on the Fed and that is reflected in the way the dollar has bounced today.”
Source: Ambito
