Dollar strengthens against major currencies As investors flock to the dollar as a safe-haven currency Amid concerns about the economy
As of 8:23 p.m. PST, the dollar was 0.93% to 134.56 yen, while the euro gained 0.83% to 136.56 and weakened 0.08% to $1.015. The index measures the dollar’s movements against the six major currencies in the basket, up 0.16% to 106.72.
Investors worried about the Chinese economy after revealing lower-than-expected retail sales and industrial production figures While the real estate sector faces liquidity problems.
The US Department of Commerce said that Homebuilding starts fell 9.6 percent in July to 1.446 million units, the lowest level since February 2021. And lower than analysts’ forecast of 1.540 million units from 1.599 million units in June.
Home-building startups have been hit by a surge in mortgage interest rates. and the price of building materials
The dollar was also boosted by a number of Federal Reserve officials (Fed) who continued to voice their support for a rate hike. Despite the signs that inflation has slowed
Chicago Fed President Charles Evans said the consumer price index (CPI) showed US inflation slowed in July. And this is the first positive data since the Fed began tightening its monetary policy.
However, Mr Evans said Inflation remains unacceptably high. And the Fed needs to continue raising interest rates.
San Francisco Fed President Mary Daly said it was too early for the Fed to declare victory in the fight against inflation.
She also did not rule out the possibility of the Fed raising interest rates by 0.75% for the third time in a row at the September meeting.
Meanwhile, investors were trading cautiously before the Fed released the minutes of its July 26-27 meeting tomorrow.