The U.S. dollar index fluctuated lower on Friday (23rd) in a thin trading environment. The latest data showed that U.S. inflation continued to slow and the economy was cooling, strengthening the Federal Reserve (Fed) to raise interest rates by a smaller margin next month. anticipation, and improved risk appetite.
In late New York trading, the ICE U.S. Dollar Index (DXY), which tracks the greenback against six major currencies, edged down 0.07% to 104.36, down about 0.3% on the week.
The annual growth rate of the core personal consumption expenditures (PCE) price index in the United States in November fell to 4.7% from 5% in October, and the monthly growth rate also slowed down from 0.3% to 0.2%. Inflation continued to cool down. In addition, US consumers’ inflation expectations for the coming year fell to their lowest in 18 months in December.
A separate report showed U.S. capital goods orders rose moderately in November, but shipments fell, suggesting business spending on equipment slowed this quarter as higher borrowing costs dampened demand for goods; Financial orders rose 0.2% month-on-month, worse than the 0.3% increase in the previous month, and shipments fell 0.1%.
Both the S&P 500 and the Dow rose, and commodity currencies, which are more sensitive to risk sentiment, gained support. The Australian dollar rose 0.74% to US$0.6716 against the US dollar, and the New Zealand dollar rose 0.7% to US$0.6291, both regaining yesterday’s decline.
The U.S. dollar was down 0.5 percent against the Canadian dollar at C$1.3596. Data showed Canada’s economic output edged up 0.1 percent in October from the previous month and is expected to grow another 0.1 percent in November.
The euro edged up 0.2 percent to $1.0614, up nearly 0.3 percent for the week.
Amo Sahota, executive director of currency advisory firm Klarity FX, said there appears to be no panic in the market today. Inflation data is heading in the right direction, even if the slowdown isn’t fast enough and U.S. growth isn’t significantly hampered.
After several sharp interest rate hikes this year, the market generally expects the Fed to raise interest rates by only one yard at its next meeting.
The dollar was up 0.3 percent against the yen at 132.85 yen. The yen fell 2.8 percent on the week after the Bank of Japan (BOJ) adjusted a key policy earlier this week.
As of about 6:00 Taiwan time on Saturday (24th) Price:
The dollar index was at 104.3252. -0.0562% The euro was trading at 1.0616 dollars to the euro. +0.1698% GBP/USD was changing hands at 1.2047 to 1 British pound. +0.0415% The Australian dollar is trading at 0.6715 Australian dollar (AUD/USD). +0.6596% The U.S. dollar was trading at 1.3594 Canadian dollars to the U.S. dollar. -0.3738% The U.S. dollar was trading at 132.82 yen per dollar. +0.3475%