He dollar rose slightly on Thursday in a choppy session, as US producer prices for March, lower than expected, did not alleviate the market’s concern about the persistence of inflation, which has reinforced the belief that the Federal Reserve will delay the interest rate cut.
The officials of the Federal Reserve who spoke on Thursday also repeated the need for a patient approach in easing of monetary policy, which boosted the dollar.
Dollar: two key reports
Data showed that the producer price index (PPI) It rose 0.2% monthly in March, compared to the 0.3% increase expected by economists surveyed by Reuters. In year-on-year terms, it rose 2.1%, compared to the 2.2% expected.
The us currency He fell after knowing the information, but later recovered.
Another report showed that initial requests for unemployment benefits in the United States were 211,000 for the week ending April 6, compared to a forecast of 215,000 applications, suggesting labor market rigidity persists. The report did not appear to affect the dollar, as investors were focused on inflation.
“He CPI has sufficiently damaged prospects for a cut “We may have to live with that to get three more months of low inflation, and that means a cut is delayed.”
The greenback was stable at 153.23 yen, having lost 153 yen following the release of the data. Earlier in the session, the dollar had hit a 34-year high of 153.295 yen.
Markets: how the rest of the currencies operated
The yen fall has once again raised fears of intervention, as Tokyo authorities reiterated that they do not rule out taking measures to address excessive fluctuations.
Japan intervened in the currency market three times in 2022, when the yen fell to a 32-year low of 152 units per dollar.
The index dollar rose 0.1%, to 105.26 units, while the euro fell 0.1%, to 1.07026 dollars.
Earlier, the European currency fell to a two-month low of $1.0699, after the European Central Bank kept interest rates at a record high of 4%, as expected and sent a signal that it is preparing for a cut.
Source: Ambito
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