Dollar steadies as Fed cautions on inflation

November 14, 2022 / 11:29 AM
Sharjah24 – Reuters: The U.S. dollar held firm on Monday following last week's bruising dive as Federal Reserve Governor Christopher Waller said that the central bank was not softening its fight against inflation.
A slightly cooler-than-anticipated inflation data on Thursday sent the greenback on a tailspin, with the dollar index <=USD> sliding 3.6% over two sessions last week, its biggest two-day percentage loss since March 2009.    

Global equities soared as investors poured into risky assets on hopes that peaking inflation means less aggressive rate hikes from the Fed. 

U.S. consumer sentiment fell in November, pulled down by persistent worries about inflation and higher borrowing costs, a survey showed on Friday.

The U.S two-year yield <US2YT=RR>, which reflects rate move expectations, edged up to 4.41%, after diving as deep as 4.29% on Friday.

Meanwhile, cryptocurrencies remained under pressure from ongoing turmoil in the crypto world after the fall of crypto exchange FTX. FTX's native token, FTT <FTT=CCCL>, was last down 4% at $1.36, taking its month-to-date losses to nearly 95%.

Bitcoin <BTC=BTSP> fell about 1% at $16,170.

The Japanese yen <JPY=EBS> weakened 0.24% versus the greenback to 139.12 per dollar, having strengthened 5.4% last week against the dollar. The euro <EUR=> was last down 0.2% at $1.0331.

Sterling <GBP=D3> was last trading at $1.1798, down 0.31% on the day ahead of British Chancellor's Autumn Statement on Thursday where he is expected to set out tax rises and spending cuts. 

The dollar index <=USD> fell 0.094% at 106.610, not far off Friday's low of 106.27.

The offshore Chinese yuan <CNH=D3> fell 0.23% versus the greenback to stand at $7.0723 per dollar on the day. The yuan had jumped on Friday after Chinese health authorities eased some of the country's heavy COVID-19 curbs.
November 14, 2022 / 11:29 AM

Related Topics

More on this Topic

Rotate For an optimal experience, please
rotate your device to portrait mode.