The US dollar is about to achieve weekly gains after statements by Federal Reserve officials and retail sales data, and after signs of declining inflation.
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The US dollar is on its way to achieving weekly gains, after the statements of the Federal Reserve officials
The US dollar is heading towards its best week in a month, today, Friday, as statements by Federal Reserve officials and stronger-than-expected retail sales data curbed the decline in the US currency after signs of declining inflation.
It also helped, last night’s 0.4% decline in the pound, after a UK budget for tax increases and spending cuts frustrated investors.
St. Louis Federal Reserve Bank President James Bullard, the latest Fed official, has been seeking to cap market ambitions to halt interest rate hikes.
He said that even under cautious assumptions, the overnight lending rate should be raised to at least 5.0-5.25% to curb inflation, up from 3.75-4.0% now. He added that the most pessimistic assumptions are in the direction of an increase of “above 7%”.
It is noteworthy that the dollar rose slightly against the Greek yen, following Pollard’s remarks, and increased by about 1% during the week.
It also rose by 0.9% against the Australian dollar, to 0.6690 Australian dollar, and is on its way to achieving its first weekly gain against its Australian counterpart since mid-October.
In addition to the rise of the US dollar index by about 0.16% so far this week to 106.59, to stabilize after a slight decrease in US inflation last week caused one of the sharpest weekly declines for the dollar.
Mention that Inflation in the United States of America It increased by 7.7% year on year.