The greenback soared this year, as the Federal Reserve has raised interest rates in an effort to control inflation, which led capital to lower-risk investments in the United States. Fears about the global economy have also fueled its appeal as a haven.
However, the data on inflationhigher than expected, caused a rally in world stock markets on Thursday and a fall in the dollar. Year-on-year inflation was 8.2%, higher than the 8.% expected but lower than that of August. This data adds pressure and expectation to the next definition of the Federal Reserve to raise the interest rate sharply.
Analysts suggested that short sellers reversing positions appear to have fueled the rebound in stocks, weighing on the dollar. “ASome of the details were not as worrying as the core inflation data suggestedso when the market started to sell off, people started to hedge quickly,” said James Malcolmhead of currency strategy at UBS in dialogue with Reuters.
The pound sterling for its part fell after a strong rise on Thursday, after the British prime minister, Liz Trussdismissed his finance minister, Kwasi Kwartengand let it be known that an important change of course would be carried out in the Government’s economic policy, in particular its fiscal plans, highly criticized by international credit organizations that caused discomfort in the market.
the battered and in Japanese reversed the initial decline and rose 1% up to 148.75 unitsits lowest value in 32 years.
The euro for your part fell 0.6% to 0.9721their first losses in a week of increases, after the European Central Bank predicted a recession for next year around 1%.
Source: Ambito
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