© Reuters. A US dollar banknote is pictured in an illustrative photo from the Reuters archive.
SINGAPORE (Reuters) – The dollar stabilized on Friday amid growing expectations that the Federal Reserve (the US central bank) would end its rate hike cycle after data showed a moderate rise in US consumer prices in July, while the yen hovered near a key threshold of 145 to the dollar.
The yen fell 0.10 percent to 144.89 per dollar in early Asian trading, its lowest since June 30, when it breached the 145 level against the dollar, raising investors’ fears of another round of interventions by the Japanese authorities.
Japan intervened in September last year when the dollar rose above 145 yen.
The yen also fell to 159.135, which is slightly less than the 15-year peak it touched yesterday, Thursday, at 159.19.
Data published on Thursday showed that the consumer price index in the United States rose 0.2 percent last month, the same rate recorded in June, while the index increased 3.2 percent in July on an annual basis.
Slowing inflation, along with slowing job growth, reinforced experts’ expectations that the US central bank would be able to manage a “soft landing” for the economy.
The index, which measures the US currency against six competing currencies, fell 0.078 percent to 102.54, but is set to achieve gains for the fourth consecutive week.
The euro rose 0.08 percent to 1.0988 per dollar.
The Australian dollar rose 0.20% to $0.6534.
The pound rose in the latest trading to $ 1.2684, and rose 0.07 during the day on Friday, and is heading to end a three-day losing streak before the GDP data.
(Prepared by Marwa Gharib for the Arabic Bulletin)
2023-08-11 03:50:00
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