O dollar operated at a high this session, recovering after a strong fall yesterday, with weakness in the euro and the pound after weaker than expected data in Europe, supporting the expectation of an end to interest rate hikes by the region’s central banks.
The DXY index, which measures the dollar against a basket of strong currencies, rose 0.33%, to 104,394 points. At the end of the afternoon, the dollar rose to 151.39 yen, the euro fell to US$1.0846 and the pound fell to US$1.2411.
The dollar gained some momentum after the publication of mixed economic data from the United States, which included a monthly drop in the producer price index (PPI) in October, a smaller-than-expected decline in retail sales between September and October and unexpected jump in the Empire State index this month
Although the data supports the perception that interest rates from the Federal Reserve (Fed, the American central bank) are at their peak, according to an analysis by High Frequency Economics, the president of the San Francisco district of the monetary authority, Mary Daly, warned, in an interview told the Financial Times, that the BC would lose credibility if it prematurely declared victory in the fight against inflation and then had to increase interest rates again, pointing out that rate cuts should not occur for “a while”.
In the case of the euro, the currency was affected by weaker industrial data from the region, indicating a “victory” against inflation by the European Central Bank (ECB), according to Nordea.
The pound, in turn, was pressured by the slowdown in the United Kingdom’s consumer price index (CPI), which, according to ING, should support a less rigid positioning by the Bank of England (BoE, in English). acronym in English), which tends to harm the exchange rate.
Among emerging markets, the blue dollar rose 4.86%, to 970 Argentine pesos, according to the newspaper Ámbito Financiero after the Argentine government unfreezes the official exchange rate of the American currency from 350 Argentine pesos to 353.05 Argentine pesos, as operators reported to multiple local press outlets.
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