Dollar declines; Yen rises, in early trade today

14 Feb 2023 , 08:28 AM

The yen gained ground prior to the anticipated announcement of surprise choice Kazuo Ueda as the next governor of the Bank of Japan, while the dollar remained stable on Tuesday as investors prepared for inflation data that is highly anticipated.

The headline number of the U.S. consumer price index (CPI) data is anticipated to rise 0.5% in January after dipping 0.1% in December, according to a Reuters poll, giving markets additional insight into the Federal Reserve’s policy outlook.

The dollar index, which compares the value of the dollar to those of six main competitors, fell 0.34% over the previous night before falling 0.019% to 103.17. For the month of February, the index increased by 1%.

The Federal Reserve increased interest rates by 25 basis points earlier this month but claimed that it was making progress in combating inflation.

After increasing by 0.435% the previous day, the euro was up 0.1% to $1.0731. After increasing by 0.6%, sterling was last seen trading at $1.2149, up 0.12% during the day.

The kiwi increased by 0.25% to $0.637 and the Australian dollar increased by 0.04% to $0.697.

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