Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2023 04 11T014700Z 1 LYNXMPEJ3A01E RTROPTP 4 GLOBAL FOREX - Business Express
FILE PHOTO: U.S. dollar banknotes are displayed in this illustration taken, February 14, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

Dollar dips ahead of inflation data later this week


By Karen Brettell

NEW YORK (Reuters) – The dollar fell on Tuesday as investors waited on inflation data for further signs of whether price pressures are ebbing and what it means for further Federal Reserve interest rate hikes.

Consumer price data on Wednesday is expected to show headline inflation rose by 0.2% in March, while core inflation rose 0.4%.

“A lot of traders are focused on this inflation data,” said Edward Moya, senior market analyst at OANDA in New York. “Everyone’s trying to get a sense of does the disinflation process return and does this complicate what the Fed does.”

The Fed is seen as likely to hike rates by an additional 25 basis points at its May 2-3 meeting, before pausing in June. Markets are also pricing for the Fed to cut rates by year-end on an expected recession, though Fed officials have stressed the need to keep rates high in order to bring down inflation.

Strong jobs data for March have added to expectations that the U.S. central bank will complete one more rate hike. The data on Friday showed employers added 236,000 jobs while the unemployment rate fell to 3.5%.

The dollar index fell 0.36% to 102.08. The euro gained 0.52% to $1.0918.

The euro was also likely boosted by a rise in European bond yields on Tuesday as traders in the region returned after markets were closed on Friday and Monday for the Easter holiday.

Algorithms trading currencies based on the difference between European and U.S. rates might have sold euros for dollars when U.S. Treasury yields rose after the jobs data while European bond markets were closed, said Simon Harvey, head of FX analysis at Monex Europe.

European bond yields rose sharply on Tuesday, catching up after the break. GVD/EUR

“There’s just that catch-up effect flushing through,” Harvey said.

The dollar also slid against the yen, after jumping on Monday as Bank of Japan Governor Kazuo Ueda signaled no hurry to dial back its massive stimulus. The dollar was last down 0.33% against the Japanese currency at 133.16.

In cryptocurrencies, bitcoin breached the key $30,000 level for the first time in 10 months. It was last up 1.8% on the day at $30,184.

========================================================

Currency bid prices at 9:34AM (1334 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Dollar index 102.0800 102.4700 -0.36% -1.362% +102.5100 +102.0000

Euro/Dollar $1.0918 $1.0861 +0.52% +1.89% +$1.0926 +$1.0862

Dollar/Yen 133.1600 133.6000 -0.33% +1.56% +133.6800 +132.9700

Euro/Yen 145.38 145.08 +0.21% +3.62% +145.4300 +144.8800

Dollar/Swiss 0.9052 0.9096 -0.49% -2.12% +0.9093 +0.9038

Sterling/Dollar $1.2435 $1.2384 +0.44% +2.84% +$1.2456 +$1.2388

Dollar/Canadian 1.3501 1.3509 -0.05% -0.35% +1.3516 +1.3483

Aussie/Dollar $0.6662 $0.6642 +0.28% -2.29% +$0.6680 +$0.6640

Euro/Swiss 0.9882 0.9876 +0.06% -0.13% +0.9885 +0.9853

Euro/Sterling 0.8778 0.8768 +0.11% -0.75% +0.8784 +0.8764

NZ $0.6210 $0.6217 -0.13% -2.21% +$0.6233 +$0.6199

Dollar/Dollar

Dollar/Norway 10.5760 10.5260 +0.52% +7.82% +10.6010 +10.4690

Euro/Norway 11.5432 11.4231 +1.05% +10.06% +11.5737 +11.4052

Dollar/Sweden 10.4531 10.5212 -0.16% +0.44% +10.5166 +10.4436

Euro/Sweden 11.4085 11.4267 -0.16% +2.38% +11.4412 +11.3920

 

(Reporting by Karen Brettell; Additional reporting by Alun John in London; Editing by Alexander Smith)

Recent Post: