Currencies Steady Ahead of US Inflation Data

27 Nov 2024 , 01:14 PM

As investors considered President-elect Donald Trump’s tariff promises and awaited a significant inflation report from the United States later in the day, the U.S. dollar steadied against its main counterparts on Wednesday.

After the Reserve Bank of New Zealand lowered benchmark rates by 50 basis points to 4.25% and reported that inflation had decreased to about the middle of its targeted range, the value of the New Zealand dollar increased.

Even though some of the reaction was subdued later in the U.S. day, investors are still uneasy about Trump’s Monday promises of significant tariffs on China, Canada, and Mexico—the three biggest trading partners of the United States.

After hitting a 4-1/2-year high of C$1.4178 on Tuesday, the greenback was up 0.15% against its Canadian counterpart at C$1.40755.

Although it was up 0.3% for the day, the dollar was still below its peak against the Mexican peso since July 2022.

Before the October Personal Consumption Expenditures (PCE) price index, which is due later on Wednesday, and the Thanksgiving holiday, which closes U.S. markets on Thursday, the dollar remained stable.

At 106.83, the dollar index, which compares the US dollar to six competitors, was down 0.07%.

Safe-haven bids, increasing wagers on a rate hike in Japan in December, and position changes all helped the yen excel.

For feedback and suggestions, write to us at [e-mail]