© Reuters. A bank employee counts US dollar bills in Hanoi, Vietnam – Photo from the Reuters Archive.
TOKYO (Reuters) – The dollar fell to a 16-week low against a basket of major currencies on Thursday after data showed U.S. consumer spending rose sharply in October, as inflation moderated, bolstering expectations. expectations on the approach of the Council of Ministers. Reserve Peak Interest Rates (Central Bank of the United States).
This came after Federal Reserve Chairman Jerome Powell said on Wednesday that the time was right to slow interest rate hikes, noting that “slowing the pace at this point is a good way to offset the risks.”
The comments were met with relief from investors, though Powell said interest rate hikes would continue and that controlling inflation “requires keeping policy at a tighter level for a while.”
The Commerce Department said on Thursday that consumer spending, which accounts for more than two-thirds of US economic activity, rose 0.8% after an unrevised 0.6% increase in September.
The Personal Consumption Spending Price Index rose 0.3%, after rising by the same margin in September. In the 12 months to October, the index rose 6.0%, after rising 6.3% in September.
It fell to 104.82 against a basket of currencies, its lowest level since August.
It reached $1.05175, its highest level since June 29.
The US currency fell to around 135.75 yen, its lowest level since August 19.
The pound also rose to $1.22890, its highest level since June 27.
Risk-sensitive currencies also rallied, with the Australian dollar climbing to $0.684, its highest since September 13. The New Zealand dollar rose to $0.63995, its highest level since August 15.
(Prepared by Mahmoud Abdel-Gawad and Amira Zahran for the Arab Bulletin – Edited by Mustafa Saleh)
