iifl-logo-icon 1

Invest wise with Expert advice

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

  • Open Demat with exclusive Advice & Services
  • Get a dedicated Relationship Manager to help you grow your wealth
  • Exclusive advisory on 20+ trading & wealth-based investment options
  • One tap Investments, Automated trading & much more
  • Minimum 1 lakh margin required
sidebar image

US Dollar on Hold as Inflation Data Looms, Bitcoin Hits $60,000

26 Mar 2024 , 03:17 PM

In the run-up to U.S. inflation statistics that might shake up the outlook for interest rates, the U.S. dollar remained strong and the yen was set to lose ground each month, while bitcoin jumped past $60,000.

Overnight, Bitcoin surged above $63,000 as investors flocked to newly launched U.S. bitcoin exchange-traded funds. It has gained more than 45% so far this month, the most since December 2020, and a record high of more than $69,000 is not far off.

In February, the yen fell 2.7% versus the euro and 2.5% versus the dollar, marking the biggest monthly decline against the single currency since June of last year, when it reached three-month lows.

Early Asia trade saw the yen hit 150.68 against the dollar, bringing it ever closer to October's lowest point of 151.74 and extremely near to prices that would have prompted government intervention in 2022. 

Speaking to traders on the fringes of the G20 financial leaders gathering in Sao Paulo, Japan's top currency ambassador Masato Kanda told them that the government is keeping a close eye on currency movements 'with a strong sense of urgency' and is prepared to act.

The New Zealand currency saw losses on wagers that the country's rate rises would end. It plummeted 1.2% against the dollar as the central bank held rates and shocked investors by lowering its rate projection. It lastly clustered at $0.6100. 

'The overall take from the (Reserve Bank of New Zealand) is that the risk of further rate hikes has lessened, which reinforces our view that (cash rate) has peaked in this current cycle,' Sue Ann Lee, an economist at UOB, said.

The core personal consumption expenditures (PCE) price index, the preferred inflation gauge of the Federal Reserve, is expected to rise by 0.4% on Thursday.

Investors were hoping for a mere 0.2% gain not too long ago, but recent readings on producer and consumer prices indicate that there is a 0.5% chance of a result.

According to currency analyst Kristina Clifton of Commonwealth Bank of Australia, 'a stronger than expected PCE deflator can cause markets to reduce pricing for May rate cut even further, supporting U.S. dollar.'

The likelihood of a Fed easing in May is priced by the markets at 20%, and they have moved the probable date of a cut to June. As of the beginning of the month, five 25 basis point cuts were implied by futures; this year, a little over three.

The decline in iron ore prices, Australia's main export, and the belief that interest rates won't climb any more have contributed to the 1.1% decline in the Australian dollar for February.

This month, the euro has been relatively stable against the dollar as anticipations for rate cuts in Europe have decreased in lockstep with those in the United States. At $1.0837, it was last stable. In February, sterling fell 0.2% to $1.2660.

At 103.92, the U.S. dollar index is up 0.3%.

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

The 10 Strongest Currencies In The World – Forbes Advisor

Related Tags

  • Bitcoin
  • Dollar
  • Euro
sidebar mobile


Read More

Most Read News

Indian markets close the day in red
29 May 2024|04:50 PM
Power Mech gets new order of Rs 563.23 crore
29 May 2024|04:52 PM
Man Industries gets new orders of ₹490 Crore
29 May 2024|05:18 PM
Read More
Knowledge Centerplus

Logo IIFL Customer Care Number
1860-267-3000 / 7039-050-000

Logo IIFL Securities Support WhatsApp Number
+91 9892691696

Download The App Now

Knowledge Centerplus

Follow us on


2024, IIFL Securities Ltd. All Rights Reserved

  • Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
  • KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

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.