FOREX-Dollar Plunges As Weak US Inflation Weighs In; Focus on the Fed next week

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Band Gertrude Chavez-Dreyfuss

NEW YORK, September 15 (Reuters)The dollar slipped against major currencies on Wednesday after weaker-than-expected US inflation data released on Tuesday eased short-term expectations of the Federal Reserve’s reduced asset purchases.

The dollar index = USD last was 92.546, down about 0.1% on Tuesday, when it fell on inflation data but recovered on safe-haven demand as stocks slid on Wall Street.

But the greenback cut its losses after data showing import prices fell unexpectedly in August and a higher than expected reading for the Newith York Fed Economic Survey.

TThose reports offset data showing that US manufacturing output slowed in August, rising 0.2% from a 1.6% increase the month before.

“The reality is that there are no indications other than the obvious: Poor economic indicators mean the recovery from the pandemic has slowed more than Delta expected,” said Juan Perez, FX strategist and trader. at Tempus Inc in Washington.

“The money in the middle of it all will still have room for gains and spikes as gloom plays a role in decreasing risk appetite, but idiosyncratic improvements in the UK as we do. we’ve seen with the CPI, and other regions could eventually start to weaken the dollar more consistently, ”he added.

Data on Wednesday showed Britain’s inflation rate peaked in nearly a decade last month after a record jump that was largely fueled by a rebound in restaurant prices.

The dollar index, a measure of greenback against six major currencies, a exchanged between 92.3 and 92.9 over the past week, as several Fed officials suggested the US central bank may cut its debt purchases by year-end, even after report on the wage bill lower than expected eearlier this month.

While high inflation kept the pressure on policymakers, overnight data showed that the U.S. consumer price index, excluding the volatile components of food and energy , had risen only 0.1% last month.

The two-day Federal Open Market Committee (FOMC) policy meeting next week is expected to provide some insight into the cut and interest rate outlook.

The tapering usually lifts the dollar as it suggests that the Fed is one step closer to tightening monetary policy. It also means that the central bank will buy less debt assets, thereby reducing the number of dollars in circulation and increasing the value of the currency.

In early in the afternoon trade, euro changed little against the dollar at $ 1,1808EUR = EBS.

The dollar fell to a four-week low at 109.14 yen JPY = EBS, and changed hands for the last time at 109.43, down 0.2%.

Meanwhile, the Chinese yuan= EBS> and Australian dollar AUD = D3slipped after Chinese data showed factory and retail sales growth slowed more sharply than expected last month. L1N2QH08P

The yuan extended its decline to up to 6.4433 yuan per dollar. The dollar fell by 0 for the last time.2% to 6.4261 yuan.

The Australian dollar fell to US $ 0.7301, its lowest in more than two weeks after data from China, but recovered trade up 0.1% $ 0.7329.

=================================================== ======

Price of currency offers at 2:16 p.m. (6:16 p.m. GMT)

The description

RIC

Last

US Close previous session

PCT change

Percentage change for the current year

High offer

Low offer

Dollar index

= USD

92.5400

92.6720

-0.13%

2.844%

+92.6830

+92.4190

Euro dollar

EUR = EBS

$ 1.1806

$ 1.1806

+ 0.01%

-3.37%

+1.1832 $

+1.1799 $

Dollar / Yen

JPY = EBS

109.4400

109.6850

-0.22%

+ 5.92%

+109.7400

+109.1100

Euro / yen

EURJPY =

129.20

129.48

-0.22%

+1.80%

+129.5300

+129.0600

Dollar / Switzerland

CHF = EBS

0.9202

0.9201

+ 0.02%

+ 4.02%

+0.9204

+0.9164

Pound sterling / dollar

GBP = D3

$ 1.3835

$ 1.3808

+ 0.19%

+1.26%

+1.3853 $

+1.3794 $

Canadian dollar

CAD = D3

1.2641

1.2693

-0.39%

-0.72%

+1.2708

+1.2631

Australia / Dollar

AUD = D3

$ 0.7328

$ 0.7323

+ 0.08%

-4.74%

+ $ 0.7339

+ $ 0.7302

Euro / Switzerland

EURCHF =

1.0864

1.0860

+ 0.04%

+ 0.53%

+1.0870

+1.0841

Euro / Pound

EURGBP =

0.8533

0.8543

-0.12%

-4.52%

+0.8563

+0.8530

New Zealand dollar / Dollar

NZD = D3

$ 0.7103

$ 0.7098

+ 0.11%

-1.06%

+ $ 0.7118

+ $ 0.7074

Dollar / Norway

NOK = D3

8.5735

8.6295

-0.51%

-0.02%

+8.6560

+8.5675

Euro / Norway

EURNOK =

10.1220

10.1990

-0.75%

-3.30%

+10.2235

+10.1220

Dollar / Sweden

SEK =

8.5845

8.6038

-0.27%

+ 4.73%

+8.6165

+8.5678

Euro / Sweden

EURSEK =

10.1355

10.1631

-0.27%

+ 0.59%

+10.1734

+10.1260

Global exchange rates https://tmsnrt.rs/2RBWI5E

(Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Ritvik Carvalho in London; Editing by Toby Chopra, Chizu Nomiyama, Timothy Heritage and Marguerita Choy)

(([email protected]; 646-301-4124; Reuters messaging: [email protected]))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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