Super dollar rises after Fed warning about US inflation

Super dollar rises after Fed warning about US inflation

A modest slowdown in US inflation on Thursday put pressure on the dollar, which fell nearly 4% in a week, marking its worst week in more than 2 1/2 years.

But Fed Governor Christopher Waller said Sunday that last week’s inflation data was “just one point of information” and that other similar readings would be needed to convincingly show that inflation was slowing. However, he added that the Fed may start to think about raising rates more slowly.

The comments threw a damper on investor hopes for a “quick recalibration of the Fed,” said Adam Button, chief currency analyst at ForexLive in Toronto.

The euro was down 0.24% at $1.0322 after having reached a maximum in three months during the wheel in Asia. By On the other hand, the Japanese yen weakened 1.25% against the greenback, at 140.50 units per dollar.

The dollar index, which measures the performance of the greenback against a basket of six currencies, including the yen, the euro and the pound sterling, it rose 0.74% to 107,072 units.

Sterling fell before Britain’s Chancellor of the Exchequer announced a budget plan on Thursday that is expected to set out tax hikes and spending cuts. The pound was down 0.77% at $1.11738, after rising 4% in the previous two sessions.

Cryptocurrencies had a rough day after the crash of crypto exchange FTX. FTX’s native token, FTT, was up 4.8% at $1.49, cutting its month-to-date loss to 94%. Bitcoin was up 1.8% at $16,607.

The Chinese yuan rose to a nearly two-month high against the dollar after the central bank raised its official guidance to the most since 2005, when Beijing abandoned the currency’s peg to the dollar for a decade.

Source: Ambito

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