After it was learned that US inflation rose more than expected in January, the dollar strengthened in the world and there is expectation regarding its value in yen.
He dollar achieves three-month highs this Tuesday, February 13, after news that US inflation rose more than expected in January, reinforcing expectations that the Federal Reserve will keep interest rates unchanged in March. Thus, the dollar index reached a peak since November of 104.87 units and is now trading up 0.6% at 104.80.
He dollar surpasses the psychological level of 150 yen for the first time since November. This happens in a context in which the United States consumer price index (CPI) gained 0.3% in January, above the figure for December, when it had advanced 0.2%. This was reported by the Bureau of Labor Statistics of the Department of Labor (BLS) of the northern country.
The annual reviews of the published CPI data Last Friday they were disparate, but in general they showed a downward trend in inflation after the rebound in 2022. That caused the value of the greenback to skyrocket this Tuesday, which reached a three-month high and reached a price of 150.58 yen , although it later fell to 150.44 yen, with an increase of 0.7%.
Dollar vs. yen: the Japanese currency could continue to decline
According to analysts, Japanese officials likely to continue putting pressure on the Japanese currency so that it remains at that level of 150 yen. It is worth remembering that the yen, which has fallen more than 5% against the dollar so far this year, is under persistent pressure as investors reduce their expectations about the scale and pace of the monetary easing cycle. Fed.
“The Fed has indicated that they are going to take it easy, and I think today’s data, as well as last week’s jobs data, show that they are right to do that,” he said. Russell Price, chief economist at Ameriprise Financial in Troy, Michigan. And he said the message “has been correct,” while he evaluated the markets’ message that the cuts would come sooner as “incorrect.”
On Tuesday, the federal funds futures They anticipated no rate cut in March and a less than 50% chance of easing in May, according to an LSEG application. The Fed’s first rate cut is now expected to occur in June, with a probability of around 80%.
Dollar against other currencies
He euro falls 0.6% to au$s1.0705after previously falling to US$1.0700, the lowest level since mid-November.
As for the cryptocurrencys, Bitcoin reached its highest level since December 2021, at $50,383, but then fell below $50,000 after the CPI data. It later traded down 1% at $49,307.
Source: Ambito
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