The US dollar is on track for weekly gains following statements from Federal Reserve officials and retail sales data and signs of easing inflation.
-
The US dollar is on track for weekly gains, following statements from Federal Reserve officials
The US dollar is heading for its best week in a month on Friday as statements from Federal Reserve officials and stronger-than-expected retail sales data capped the US currency’s decline after signs of a decline in the US dollar. ‘inflation.
It also helped, last night’s 0.4% drop in sterling after a UK budget of tax increases and spending cuts frustrated investors.
Federal Reserve Bank of St. Louis President James Bullard, the last Fed official, has been trying to curb market ambition to stop interest rate hikes.
He said that even under conservative assumptions, the overnight lending rate would need to be raised to at least 5.0-5.25% to curb inflation, from 3.75-4.0% at present. He added that the most pessimistic assumptions are in the direction of an increase “more than 7%”.
Interestingly, the dollar was up slightly against the Greek yen, following Pollard’s remarks, and is up about 1% for the week.
It also rose 0.9% against the Australian dollar, to AUD 0.6690, and is on track for its first weekly gain against its Australian counterpart since mid-October.
In addition to the US dollar index rising about 0.16% so far this week to 106.59, stabilizing after a slight dip in US inflation last week has caused one of the steepest weekly declines for the dollar.
Mention it Inflation in the United States of America It’s up 7.7% year over year.
