The US currency was boosted by comments from Federal Reserve officials and housing market data.
He global dollar rose on Tuesday, fueled by aggressive comments from administration officials Federal Reserve, as well as by data that showed a real-estate market stability in the world’s largest economy, suggesting the central bank will not rush into its interest rate cutting cycle.
The greenback appreciated against the euro, he and in, he Swiss franc, and commodity currencies, such as the Australian and New Zealand dollars. The governor of the Fed, Michelle Bowman was the first to encourage dollar, reiterating his view that maintaining the interest rate official “for some time” will be enough to control inflation. He also repeated his willingness to raise the cost of credit if necessary.
He dollar it gained 0.1% against the yen, to 159.68 yen, clinging to a narrow margin. Fear of intervention by the Japanese authorities discouraged traders from selling the yen strongly against the dollar and other currencies. He euro fell 0.2% against the dollar to $1.0714. Against a basket of currencies, the dollar index added 0.1%, to 105.72.
Fed Governor Lisa Cook, meanwhile, said it would be appropriate to cut rates “at some point” given the significant progress on inflation and a gradual cooling of the labor market. However, she remained vague about the timing of monetary relief.
“If you listen to Fed officials, they are very timid about putting too much weight on the one weak report we’ve given, even though overall we still had stronger reports since the beginning of the year,” he said. Jayati Bharadwaj, global currency strategist at TD Securities in New York.
“They sound very uncommitted and also very dependent on the data, given the uncertainty around the inflation outlook which is higher in USA than in other parts of the world,” he added.
Mixed economic data
* US data was mixed on Tuesday, still allowing the dollar to maintain its gains. The rise in prices of single family Home It remained stable in April, with a monthly increase of 0.2%, after having not changed in March. In the 12 months to April, they grew 6.3%, which compares to 6.7% in March.
However, the consumer confidence Americans fell slightly in June, with an index of 100.4, compared to 101.3 in May, revised downwards, according to the Conference Board. However, the June figure was slightly above the market forecast of 100.
Investors are now awaiting the release of the U.S. price index on Friday. personal consumption expenses (PCE), the Federal Reserve’s preferred measure of inflation.
Source: Ambito
