• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

Dollar skids as soft U.S. inflation weighs; Fed meeting looms next week

September 15, 2021 by David Barret Leave a Comment

September 15, 2021

By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) -The dollar slumped against major currencies on Wednesday after softer-than-expected U.S. inflation data released on Tuesday eased short-term expectations about tapering of asset purchases from the Federal Reserve.

The dollar index last stood at 92.514, down about 0.2% from Tuesday, when it dropped following the inflation data but recovered on haven demand as stocks slid on Wall Street.

But the dollar trimmed losses after positive data showing import prices fell unexpectedly in August and a higher-than-expected reading for the New York Fed’s business survey.

These reports offset figures showing U.S. manufacturing output slowed in August, rising 0.2% from a 1.6% increase the previous month.

“The reality is that there is no guidance other than the obvious: poor economic indicators mean the recovery from the pandemic has slowed down more than expected by Delta,” said Juan Perez, FX strategist and trader at Tempus Inc in Washington.

“The buck in the midst of all this will still have room for gains and spikes as doom and gloom play a role in diminished risk-appetite, but idiosyncratic improvements in the UK as we saw with CPI, and other regions could eventually start weakening the dollar more consistently.”

Wednesday’s data showed Britain’s inflation rate hit its highest in almost a decade last month after a record jump that was largely fuelled by a rebound in restaurant prices.

The dollar index, a measure of the greenback’s value against six major currencies, has traded between 92.3 and 92.9 over the past week as several Fed officials suggested the U.S. central bank could reduce buying debt securities by the end of the year, even after a weaker-than-expected payrolls report earlier this month.

While elevated inflation has kept pressure on policymakers, data overnight showed the U.S. consumer price index, excluding the volatile food and energy components, edged up just 0.1% last month.

The Federal Open Market Committee’s (FOMC) two-day policy meeting next week should provide some clarity on the outlook for tapering and interest rates.

Tapering typically lifts the dollar as it suggests the Fed is one step closer to tighter monetary policy. It also means the central bank will be buying fewer debt assets, in effect reducing the number of dollars in circulation and increasing the currency’s value.

“We think a combination of modest economic revisions (by the Fed) and steady messaging on the interest rate outlook should be supportive for the U.S. dollar, given that many other central banks are likely to lag the Fed’s policy normalization process by a substantial margin,” Scotiabank FX analysts wrote in a research note.

In late afternoon trading, the euro was up 0.1% against the dollar at $1.1813.

The dollar fell to a four-week low of 109.14 yen, and last changed hands at 109.38, down 0.3%.

Meanwhile, the yuan and Australian dollar slid earlier after Chinese data showed factory and retail sales growth cooled more sharply than expected last month. [L1N2QH08P]

The dollar was last down 0.1% against the Chinese currency at 6.4275 yuan.

The Aussie dollar sank as low as US$0.7301, its lowest in more than two weeks following China’s data, but recovered to trade up 0.1% US$0.7331.

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

Currency bid prices at 3:50PM (1950 GMT)

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

Previous Change

Session

Dollar index 92.4800 92.6720 -0.19% 2.777% +92.6830 +92.4190

Euro/Dollar $1.1815 $1.1806 +0.08% -3.30% +$1.1832 +$1.1799

Dollar/Yen 109.3850 109.6850 -0.28% +5.86% +109.7400 +109.1100

Euro/Yen 129.23 129.48 -0.19% +1.82% +129.5300 +129.0600

Dollar/Swiss 0.9196 0.9201 -0.05% +3.95% +0.9205 +0.9164

Sterling/Dollar $1.3844 $1.3808 +0.27% +1.34% +$1.3853 +$1.3794

Dollar/Canadian 1.2627 1.2693 -0.53% -0.86% +1.2708 +1.2625

Aussie/Dollar $0.7332 $0.7323 +0.12% -4.70% +$0.7339 +$0.7302

Euro/Swiss 1.0865 1.0860 +0.05% +0.54% +1.0870 +1.0841

Euro/Sterling 0.8534 0.8543 -0.11% -4.51% +0.8563 +0.8530

NZ $0.7107 $0.7098 +0.13% -1.03% +$0.7118 +$0.7074

Dollar/Dollar

Dollar/Norway 8.5710 8.6295 -0.63% -0.13% +8.6560 +8.5675

Euro/Norway 10.1298 10.1990 -0.68% -3.22% +10.2235 +10.1220

Dollar/Sweden 8.5826 8.6038 -0.23% +4.71% +8.6165 +8.5678

Euro/Sweden 10.1402 10.1631 -0.23% +0.63% +10.1734 +10.1260

(Reporting by Gertrude Chavez-Dreyfuss; Editing by Chizu Nomiyama, Timothy Heritage, Marguerita Choy and Philippa Fletcher)

Source Link Dollar skids as soft U.S. inflation weighs; Fed meeting looms next week

David Barret
David Barret

Related posts:

  1. Global reinsurance rates to keep rising next year – Moody’s
  2. Cricket-Buttler, Leach added to England squad for final India test
  3. Jetty raises $23M to help give renters more payment flexibility
  4. European stocks slip from recent highs, telecom deals in focus

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • Canada Is Home To The World’s First Official UFO Landing Pad
  • Path Of Hurricane Erin, One Of The Fastest-Strengthening Storms On Record, Captured In Dramatic Satellite Images
  • What Did Ancient People Think When They Found Fossils?
  • Shaman Training Cave, Uranus’s New Moon, And A Bright Orange Shark
  • Ancient Bacteria Resurrected By Heavy Rains Killed A World-First Attempt At Northern White Rhino IVF
  • Forget Planet X! Beyond Neptune, There Might Be An Earth-Sized Planet Y
  • One Of The World’s Oldest And Tallest Trees Just Lost 15 Meters In Height Due To “Mysterious” Fire
  • Color Vs. Flight: Are Darker Birds’ Feathers Weighing Them Down?
  • 9,000-Year-Old Dog Poop Reveals Siberian Sled Dogs Ate Polar Bears
  • Watch The Highest Resolution View Of A Solar Flare Down To An Incredible 21 Kilometers
  • Jupiter’s Mysterious Core: Science’s Best Explanation For How It Formed Doesn’t Work After All
  • The Largest Ancient Whale Graveyard In The World Is In The Middle Of… A Desert?
  • Some Languages Don’t Clearly Express A Sense Of The Future, And It Skews The Way We See Reality
  • Rare White Kiwi Seen Scampering Back To Its Burrow In Broad Daylight In New Zealand
  • What Is Osmotic Power? Japan’s New Renewable Energy Plant Goes Live
  • The “Wow!” Signal Was Likely From An Extraterrestrial Source, And More Powerful Than We Thought
  • The Greatest Prank Ever Pulled In Space Really Fooled NASA’s Mission Control
  • Why Does Seafood Glow In The Dark? This Curious Phenomenon Has A Teeny Tiny Explanation
  • In 1973, A Handful Of People Witnessed A Whopping 74-Minute Total Eclipse
  • Does Putting A Metal Spoon In Champagne Really Keep It Fizzy?
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version