24hoursworld

The global dollar fell due to the inflation data in the US

The global dollar fell due to the inflation data in the US
The global dollar fell due to the inflation data in the US

In addition, the Fed ended its meeting without any news on interest rates and gave a boost to the US currency at the close of the day.

Photo: Pexels

He global dollar fell after operators echoed inflation in USA and after it is known that the Federal Reserve (Fed) will maintain interest rates, with the possibility of just one cut in the remainder of the year. In Uruguay, Meanwhile, the US currency rose.

He dollar began on Wednesday pressured by expectations for new signs of the monetary politics US, retreating from the four-week high that it had reached the previous day while waiting for the update of the economic projections and the data on the evolution of prices in May.

In this way, the dollar index It fell 0.5% to 104.73 units, after hitting its highest level since May 14, at 105.46, on Tuesday. He euro It gained 0.63% to $1.0807 and reached $1.0852 in the session, after hitting $1.07195 on Tuesday, its lowest level since May 2.

Meanwhile, the Bank of Japan also meets this week, and is expected to keep interest rates steady and consider offering clearer guidance on how it plans to reduce its huge balance sheet. He dollar fell 0.17%, to 156.8 yen, after reaching a high of 157.40 yen on Tuesday.

The influence of the Fed’s decision on the value of the dollar

He general consumer price index (IPC) remained stable in the month, and below expectations of an increase of 0.1%. Prices underlying They grew by 0.2%, also less than economists’ forecasts of an increase of 0.3%.

The data reinforced the expectations that the US central bank will make two 25 basis point rate cuts in 2024, the first likely in September. But the forecasts of the officials of the Federal Reserve, They later showed just one cut this year.

“It is clear that members of the Federal Reserve have not been swayed by today’s CPI report, or have been reluctant to change their forecasts at the last minute,” he said. Adam Button chief currency analyst at ForexLive in Toronto.

In March, Fed policymakers had forecast three rate cuts this year. On Wednesday, the central bank also pushed back its outlook for the start of rate cuts until perhaps December.

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts