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The dollar is shaky and the kiwi strengthens in early trade

19 Jul 2023 , 11:32 AM

On Wednesday, as traders evaluated the U.S. rate outlook, the dollar maintained close to a more than one-year low, while the New Zealand dollar momentarily rose after a higher-than-expected inflation reading delayed the possibility of additional policy easing.

The U.S. dollar was able to edge higher following a mixed retail sales data released overnight. While sales growth fell short of expectations in June, consumers increased or maintained their spending elsewhere, demonstrating consumer resilience, which is likely to put the economy on a strong growth path.

The U.S. dollar recovered from a 15-month low against a basket of currencies struck in the previous session, with its index holding steady at 99.943 in early Asian trade.

In the wake of a lower-than-anticipated reading for U.S. inflation, which led traders to price in an impending peak in U.S. rates, the greenback has halted its sharp slide from last week.

The euro was recently stable at $1.1230, down from the 17-month high of the previous session of $1.1276.

Prior to the release of UK inflation figures later on Wednesday, the pound purchased $1.3035.

The pound may, however, revert to pushing lower on rate increases if recession chances in the UK increase because investors will be scared off by the entire UK economic landscape and will reduce their long (pound) positions.

After soaring more than 0.6% to a session high of $0.6315 following the report, it was last 0.25% higher at $0.6291.

The Australian dollar recently traded at $0.68065, down 0.08%. The Japanese yen decreased slightly to 138.88 per dollar elsewhere.

Indicating his intention to retain an ultra-loose monetary policy for the time being, Bank of Japan Governor Kazuo Ueda stated on Tuesday that there was still some distance to cover before the central bank’s 2% inflation objective could be sustained and stabilized.

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

The 10 Strongest Currencies In The World – Forbes Advisor

Related Tags

  • Dollar
  • Euro
  • FOREX
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