He dollar fell this Tuesday, December 26 in the world, while investors waited for new clues about when the Federal Reserve could start cutting interest rates, as inflation approaches the US central bank’s 2% annual target.
However, currency movements were muted the day after Christmas, as global markets The United Kingdom, Australia, New Zealand and Hong Kong, among others, were still on vacation. Many American operators will also be away until the New Year.
The greenback is on track to record its worst result since 2020 against a basket of currencies, as expectations of Fed rate cuts have diminished the attractiveness of the US currency against its peers.
Many analysts expect that The US economy will slow down noticeably in 2024, but also for the Fed to take steps to ensure that the gap between the federal funds rate and actual inflation does not widen too much.
“The Fed has made considerable progress on inflation, with core inflation starting the year closer to a 5% annual rate, although the work is not yet done to ensure inflation remains on a sustained path toward its 2% target. “Wells Fargo analysts noted in a note.
Dollar in the world: Tuesday, December 26
The dollar index fell 0.04%, to 101.59 pointsafter having fallen from the 20-year high reached on September 28, 2022 (114.78), and accumulate a annual loss close to 1.84%.
The euro gained 0.01% to $1.1024. The single currency has risen from a 20-year low of $0.9528 on September 26, 2022, and is on track to close up 2.9% this year.
The dollar advanced 0.02% against the yen, to 142.42 units. On October 24, 2022, the dollar reached a 32-year high of 151.94 yen, and was close to reaching this level again last month before the Japanese currency recovered. So far this year, the US currency has appreciated 8.63%.
Source: Ambito
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