iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

Dollar falls as important US data approaches; JPY manufacturers beat on CPI

27 Feb 2024 , 10:41 AM

Tuesday’s trading saw the dollar weaken as investors anticipated a week of significant economic data from the United States that will offer new insights into the timing of potential interest rate reductions by the Federal Reserve. 

The Bank of Japan’s 2% objective for consumer inflation was maintained, rather than falling for the first time in almost two years, as predicted by economists, and this resulted in a small strengthening of the yen.

Early in Asian time, the U.S. dollar index, which compares the value of the dollar to a basket of currencies that includes the yen and euro, was unchanged at 103.78 after falling 0.17% on Monday.

Following solid U.S. consumer and producer price data, markets have all but ruled out a cut at the Fed’s March meeting and have recently moved out expectations for a cut to June from May, according to CME’s FedWatch Tool.

The preferred inflation indicator used by the Fed, the U.S. personal consumption expenditures price index for January, is scheduled to be issued on Thursday. Later on Tuesday, the country’s durable goods data is expected.

The New Zealand and Australian currencies declined. The Australian dollar continued its downward trend from its three-week high of $0.6595 on Thursday, losing 0.1% to $0.6533.

The kiwi fell 0.2% to $0.6161 on Thursday after reaching its highest level since January 15 at $0.6218.

Traders are getting ready for what may prove to be an important Reserve Bank of New Zealand (RBNZ) policy meeting on Wednesday. The RBNZ’s decision to increase its official cash rate from 5.5% to battle persistent inflation is priced in by markets as happening one in three times.

Bitcoin, a cryptocurrency, surged to a height of $54,969 overnight, more than two years ago, following the announcement by commercial software company MicroStrategy Inc. that it had purchased over 3,000 more units. 

A slightly hotter-than-expected report for Japan’s January consumer price index (CPI) maintained the BOJ on pace to end its negative interest rate policy as early as next month, but the dollar fell 0.1% to 150.54 yen.

Sterling remained unchanged at $1.26825, while the euro barely moved at $1.0847.

For feedback and suggestions, write to us at editorial@iifl.com
 

Related Tags

  • CPI
  • Data
  • Dollar
  • Dollar JPY
  • FOREX
  • Forex News
  • U.S. dollar index
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.