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The super dollar operates at eight-month lows and the euro shoots up after the CPI in Spain

The super dollar operates at eight-month lows and the euro shoots up after the CPI in Spain

In January, the dollar fell more than 1.5% and is on track to post its fourth consecutive monthly loss, pressured by expectations that the Federal Reserve is nearing the end of its rate hike cycle and that interest rates may not have to rise as much as feared.

For its part, the euro rose 0.14% to $1.0885, after consumer prices in Spain rose 5.8% in January compared to the same month of the previous year, above the annual rate. of 5.7% registered in December and the first increase since last July.

The moves were relatively subdued ahead of this week’s Federal Reserve, European Central Bank (ECB) and Bank of England (BoE) monetary policy meetings.

The market expects the Federal Reserve to raise rates by 25 basis points, which would be a change from last year’s 50 and 75 basis point hikes, while the Bank of England and ECB are likely to raise rates by 50 basis points. basic each.

The euro, which is heading for a 1.6% monthly gain, has been supported by continued hawkish rhetoric from ECB policymakers and easing fears of a deep recession in the euro zone.

Elsewhere, the yen fell 0.2% to 130.17 per dollar after Bank of Japan Governor Haruhiko Kuroda said on Monday that the central bank should continue its expansionary policy.

The yuan in mainland markets appreciated against the dollar on Monday, rising about 0.5% to 6.7492 per dollar, as investors welcomed signs of economic recovery indicated by strong data on the spending on vacations and tourism.

Source: Ambito

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