Dollar weakens against EUR amid expectation of US inflation report
Date
5/15/2024 7:51:36 AM
(MENAFN) On Wednesday, the dollar experienced a notable decline against the euro, reaching its lowest point in a month, as traders awaited the release of a pivotal inflation report in the United States. This report, scheduled for later in the day, holds significant implications for the trajectory of the US Federal Reserve's monetary policy.
Meanwhile, the yen saw a modest uptick against the dollar, albeit remaining near its lowest level in two weeks. This trend was attributed to the persistent yield gap between Japanese bonds and their American counterparts, which continued to incentivize the selling of the Japanese currency.
The euro, on the other hand, recorded a 0.1 percent increase to USD1.0826, marking its first climb to USD1.0835 since April 10. In tandem with this, the dollar index, a measure of the US currency's performance against a basket of six major currencies, dipped by 0.11 percent to 104.90, reaching its lowest point in a week and a half. This movement was notably influenced by the euro's performance.
Market expectations leading up to the day's events were reflected in a Reuters poll, which projected a 0.3 percent increase in the consumer price index for April, compared to a previous rise of 0.4 percent in March.
Against the yen, the dollar experienced a 0.29 percent decline, settling at 155.99 yen on Wednesday, following an overnight rise to 156.80 yen. This volatility in the dollar-yen exchange rate stemmed from recent highs reached by the dollar against the yen, prompting suspicions among traders and analysts of intervention by Japan's central bank and finance ministry.
Meanwhile, the yuan saw a recovery from its recent two-week low against the dollar, buoyed by investor optimism surrounding reports of potential measures to address the housing sector crisis in China. This positive sentiment overshadowed concerns stemming from the US President's decision to impose significant tariff hikes on a wide range of Chinese goods. The dollar's decline against the yuan outside of China stood at 0.22 percent, with the exchange rate settling at 7.2222 yuan.
MENAFN15052024000045015682ID1108215898
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.