The U.S. dollar index rose on Friday (10th), marking its second consecutive week, as investors expect that next week’s U.S. consumer price index (CPI) may be higher than expected. On the other hand, after the Japanese government decided to appoint Kazuo Ueda, a former Bank of Japan (BOJ) review member, as the new governor of the Bank of Japan, the yen once climbed to a one-week high, ending three consecutive weeks of blackouts.
In late New York trade, the ICE U.S. Dollar Index (DXY), which tracks the greenback against six major currencies, was up 0.35% at 103.58 and closed up 0.6% for the week.
In February, the University of Michigan survey showed that American households’ inflation expectations for the coming year were 4.2%, higher than the final value in January, and the overall consumer confidence index reached 66.4, a new high in one year.
In addition to the big data, the U.S. Bureau of Labor Statistics announced the revised annual inflation value, showing that the CPI rose slightly by 0.1% in December, which was not a 0.1% drop announced last month, and the November data was also revised up from a monthly increase of 0.1% to 0.2% .
“Next week’s CPI report is in focus as there are signs this morning that inflation is stronger than thought last year, which really weighs on the idea of a possible Fed rate cut,” said Mazen Issa, currency strategist at TD Securities. Challenges, including strong data on unemployment benefits, the ISM, and the labor market, are driving a longer-term Fed policy stance, which could eventually happen, helping the dollar regain its footing.”
According to a Reuters survey, the market expects that the overall CPI and core CPI in the United States will both increase by 0.4% in January next Tuesday (14th).
The yen rose more than 1 percent to a one-week high against the dollar on Friday. According to Japanese media reports, the Japanese government decided to appoint Kazuo Ueda, a former Bank of Japan review member, as the next president of the Bank of Japan. However, after the latter stated that the current easing policy is appropriate, the yen’s gains have converged. Before the deadline, the yen rose slightly by 0.18% to 131.35 yen to 1 Dollar.
Japanese Prime Minister Fumio Kishida said the government plans to submit the Bank of Japan chief executive case to parliament on Tuesday. The yen rose slightly by 0.17% against the US dollar this week, stopping three blacks in a row.
The euro and the pound fell against the U.S. dollar. The euro fell 0.6% to $1.0675, approaching a one-month low, and fell 1.1% this week; the pound fell 0.5% to $1.2058, closing slightly higher for the week.
The Australian and New Zealand dollars both fell about 0.3 percent, with the Aussie at $0.6914 and the New Zealand dollar at $0.6304.
As of about 7:30 Taiwan time Saturday (11th) Price: The US dollar index was at 103.5829. +0.3550% EUR/USD exchange rate is changing 1 euro to 1.0677 dollars. -0.5681% The pound was trading at $1.2056 against the dollar (GBP/USD). -0.5116% The Australian dollar was trading at 0.6919 US dollar (AUD/USD). -0.2451% The U.S. dollar was trading at 1.3342 Canadian dollars to the U.S. dollar. -0.8325% The U.S. dollar was trading at 131.34 yen per dollar. -0.18%