dollar indexIt rallied slightly on Tuesday (10), but continued to hover near a seven-month low as traders await US inflation data due later this week to gauge expectations of a rate hike by the Federal Reserve.
ICE, which tracks the dollar against six major currencies, in late US trade dollar index (DXY extension) rose 0.27% to 103.28.
Fed Chairman Jerome Powell attended the Riksbank event and said unpopular short-term measures may be needed to stabilize inflation, while also emphasizing central bank independence. He did not address the issue of interest rate hikes during the event.
Win Thin, head of global currency strategy at Brown Brothers Harriman, said the dollar could remain under pressure until the Fed makes a more aggressive statement, but he thinks the dollar is too weak for now.
The dollar has fallen lately as market participants questioned whether the Fed will let the final rate rise above 5% as the impact of last year’s aggressive rate hikes began to emerge. Investors now expect the terminal rate to peak at just below 5% by June, before easing back by the end of the year.
The dollar’s losses took a breather as traders braced for the US consumer price index (CPI).
Simon Harvey, head of FX analysis at Monex Europe, said: “The market understands that we reduced our dollar exposure ahead of the CPI announcement and the continued inflation risk in the US is still very high. . maintain a high level of interest rates.”
EURIt rose 0.06% to $1.0736, still slightly below the seven-month high it hit on Monday (9);GBPIt fell more than 0.2% to $1.2151, retreating from its three-week high.
China’s reopening has given risky assets a boost this week, especially currencies tied to the Chinese economy.
However, after climbing to a high of more than four months in the previous session,Australian dollarIt fell slightly today, down nearly 0.3% to $0.6893 before expiry,string sourceIt was nearly flat at $0.6369 at press time.
offshoreRMBSlightly down 0.1% today, reported 6.784 before expiry RMBAgainst the dollar, it has retreated from its five-month high.
JPYDepreciated nearly 0.3% to 132.23 JPYAgainst 1 dollar. After the Bank of Japan unexpectedly adjusted its yield curve control late last year,JPYMostly louder.
Starting around 6:00am Wednesday (11am) Taiwan Time Price:
- dollar indexCall 103.2794. +0.0862%
- EURExchange rate against the US dollar (EUR/USD) 1 EURAgainst $1.0736. +0.0373%
- GBPExchange rate against USD (GBP/USD) 1 GBPAgainst $1.2151. -0.2790%
- Australian dollarExchange rate against the US dollar (AUD/USD) 1 Australian dollarAgainst $0.6892. -0.2894%
- US dollar vsCanadian dollars (USD/CAD) quoted 1 US dollar at 1.3425 Canadian dollars。+0.2614%
- US dollar vsJPY (USD/JPY) Exchange rate quoted 1 US dollar at 132.22 JPY。+0.2578%
