Dollar falls as investors caution, sterling gains on Bank of England expectations
Date
7/11/2024 4:10:58 AM
(MENAFN) The dollar experienced a slight decline on Thursday as investors remained cautious ahead of a crucial U.S. inflation report expected later in the day. In contrast, the British pound rose to a one-month high of USD1.28545 during early Asian trading, continuing its gains from the previous session when it increased by 0.48 percent. This rise was driven by comments from bank of England policymakers, which led markets to reduce their expectations of an interest rate cut in August.
Overall, the dollar's downward trend reflected the market's anticipation of the U.S. inflation data. The euro edged up by 0.04 percent against the dollar to USD1.0834, while the Australian dollar saw a modest increase of 0.01 percent, reaching USD0.6754. Meanwhile, the dollar index, which measures the currency against a basket of others, remained relatively unchanged at 104.95.
In the United States, core inflation for June is anticipated to rise by 0.2 percent month-on-month, bringing the annual rate to 3.4 percent. Federal Reserve Chairman Jerome Powell emphasized on Wednesday that the central bank would make interest rate decisions as necessary, dispelling speculation that a rate cut in September might be politically motivated ahead of the fall presidential election.
The New Zealand dollar gained 0.11 percent to USD0.60885, recovering some of the losses from the previous session when it had fallen by 0.7 percent. The Japanese yen continued to weaken, influenced by the significant interest rate differential between the United States and Japan, and was trading at 161.54 per dollar, near its lowest level in 38 years.
MENAFN11072024000045015682ID1108430584
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.