Dollar rises against the euro and the yen after data on consumer prices in the US

Share your love

The dollar rose against the yen, euro and other currencies on Tuesday after higher-than-expected US inflation data suggested the Federal Reserve may have to remain aggressive in raising rates. of interest.

* The dollar index, which measures the greenback’s performance against a basket of six currencies, rose 1.1% to 109.39, nearing a two-decade high of 110.79 hit last week. The index changed its trend and began to operate in positive territory after the data.

* The euro, the pound and the yen fell. The euro was down 1% against the greenback at $1.0016, having hit a nearly one-month high of $1.0198 in the previous session.

* US consumer prices unexpectedly rose in August as lower gasoline prices were offset by rising rent and food costs.

* “The data was much stronger than expected. Of particular concern is the fact that core inflation almost doubled estimates,” said Karl Schamotta, chief market strategist at Corpay in Toronto.

* “This is going to kill the idea of ​​transitory inflation for now… We are now looking at almost certain odds of a 75 basis point move next week” by the Fed, he added.

* Against the yen, the dollar rose 0.9% to 144.095 per dollar.

* The pound was down 1.2% at $1.1544. Earlier in the day, it hit a two-week high after the British jobless rate fell to its lowest level since 1974, while wages excluding bonuses rose 5.2%, the highest rate since the three months to August 2021.

Read Also   San Francisco will pay some gang members $ 300 a month to quit gun violence
Share your love

Leave a Reply

Your email address will not be published.