2023-12-01 07:28:00
© Archyde.com. US dollar banknotes in an illustration from Archyde.com archives.
By Ankur Banerjee
SINGAPORE (Archyde.com) – The dollar fell on Friday, while the euro rose after suffering heavy losses overnight, as traders evaluated data that showed a decline in inflation, raising expectations that interest rate hikes have peaked and that central banks will soon begin lowering them.
The US currency, which measures the performance of the US currency against a basket of six competing currencies, fell 0.116 percent to 103.33 after recording its weakest monthly performance in a year in November, despite an overnight rise of 0.6 percent.
Data on Thursday showed US consumer spending rose moderately in October, while the annual increase in inflation was the smallest in more than two-and-a-half years.
The personal consumption expenditures price index rose three percent in October on an annual basis, a decline from a reading of 3.4 percent over three months, but the readings are still higher than the US Central Bank’s target of two percent.
Fed policymakers signaled on Thursday that rate hikes were likely over, but left the door open to further monetary tightening if progress in curbing inflation stalls.
Investors’ focus turns to Federal Reserve Chairman Jerome Powell’s comments later on Friday, scrutinizing every word in order to chart the course of the interest rate.
In Europe, data on Thursday showed that inflation in the euro zone fell more than expected for the third month in a row in November, raising bets on a rate cut at the beginning of the spring.
The data led to a decrease in the euro by 0.7 percent on Thursday, and it rose in the latest trading by 0.21 percent, recording $1.0909. But the consolidated index is down 0.2 percent this week.
The pound rose in recent transactions by 0.14 percent, recording $1.264.
It increased 0.06 percent to 148.09 per dollar and is on its way to record a third consecutive week of gains against the dollar, moving away from the lowest level in nearly 33 years that it touched in mid-November, which is 151.92.
The Australian dollar rose 0.06 percent to $0.661 and the New Zealand dollar rose 0.13 percent to $0.616.
(Prepared by Salma Najm for the Arab Bulletin – Edited by Soha Jado)
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