by Gertrude Chavez-Dreyfus
New York, July 10 (Reuters) – The dollar fell to a three-week low on Monday after remarks by a Federal Reserve official boosted market expectations that the U.S. central bank was nearing the end of its tightening cycle.
But the Fed is widely expected to raise rates by another 25 basis points this month, despite Friday’s report showing the lowest U.S. job growth in two-and-a-half years. The expected rate hike in July will follow the Fed’s moratorium in June.
Fed officials led by San Francisco Fed President Mary Daly said Monday that the central bank will likely need more rate hikes to curb stubborn inflation, but the end of the current cycle of monetary policy tightening is over. said it would be approach.
In afternoon trading, the dollar index = USDThe currency, which shows the US currency’s cohesion to a basket of major U.S. currencies, fell 0.3% to 101.98, a three-week low.
The euro climbed to a three-month high of $1.0997 against the dollar and last traded at $1.0995. Euro = EBSrose 0.2%.
Against the yen, it fell to 141.32 yen JPY=EBS, the lowest since June 21. The last time it was down 0.6% to 141.335. The U.S. economy fell nearly 1.3% last Friday, falling below market expectations for the first time in 15 months, after adding 209,000 jobs in June.
“The weakening of pressure on the dollar … is difficult to deal with from a relative interest rate and growth perspective,” said Eric Nelson, macro strategist at Wells Fargo in London.
“U.S. growth exceeded expectations, but Europe and China underperformed. I think the U.S. economy is stronger than we believe,” Nelson added.
Friday’s jobs report, which reflected persistently strong wage growth, showed markets priced in another rate hike later this month, even if the once-expected late 2023 rate cut now looks unlikely. I made it clear that
With the US nonfarm payrolls data settling down, all eyes are on Wednesday’s US inflation data. Core CPI in June is expected to rise by 5% annually.
Meanwhile, the Norwegian crown, the second worst-performing currency in the G10 this year, rose as the data showed. core inflation It continued to rise in June, setting a new record.
The Norwegian royal family held firm against the dollar and euro after Norway’s inflation data. The dollar last dropped 1% to $10.493. NOK=D3Meanwhile, the euro fell nearly 1% to 11.5363. Euroknock = D3.
The Chinese yuan weakened against the dollar after weak inflation data for the world’s second-largest economy.
Monday’s data showed FACTORY GATE PRICE DOWN Inflation hit its fastest pace in seven-and-a-half years in June and consumer inflation hit its lowest since 2021, raising hopes for more support from Chinese officials.
US dollar changed slightly against offshore renminbi CNH=D3 7:230.
Weak Chinese economic data sent the Australian and New Zealand dollars, often used as liquidity proxies for the Chinese yuan, down.
Australian person Australian dollar = D3 The New Zealand dollar fell 0.2% to US$0.6677. NZD=D3 It reversed its losses and traded 0.1% higher at $0.6215.
================================================== =====
Currency bid price at 3:05 PM (19:05 Japan time)
explanation
Rick
last
US ends previous session
Rate of change
YTD percent change
high bid
low bid
dollar index
= USD
101.9700
102.2900
-0.30%
-1.469%
+102.5600
+101.9700
euro/dollar
Euro = EBS
$1.0997
$1.0969
+0.26%
+2.64%
+$1.1000
+$1.0944
dollar/yen
JPY=EBS
141.3050
142.2200
-0.65%
+7.77%
+142.9950
+141.2950
euro/yen
Euro Yen =
155.39
155.84
-0.29%
+10.76%
+156.6700
+155.3400
dollar/switzerland
CHF=EBS
0.8855
0.8891
-0.41%
-4.24%
+0.8918
+0.8854
sterling/dollar
GBP=D3
$1.2855
$1.2841
+0.12%
+6.31%
+$1.2857
+$1.2751
dollar/canada
CAD=D3
1.3280
1.3279
+0.00%
-1.99%
+1.3304
+1.3269
Australia/Dollar
Australian dollar = D3
$0.6676
$0.6693
-0.25%
-2.06%
+$0.6696
+$0.6624
Euro/Switzerland
euro franc =
0.9738
0.9750
-0.12%
-1.59%
+0.9762
+0.9739
euro/pound
EURGBP=
0.8552
0.8541
+0.13%
-3.30%
+0.8584
+0.8542
New Zealand Dollar/Dollar
NZD=D3
$0.6215
$0.6209
+0.13%
-2.09%
+$0.6218
+$0.6167
dollar/norway
NOK=D3
10.4940
10.6230
-1.02%
+7.14%
+10.6730
+10.5150
Euro/Norway
Euroknock =
11.5389
11.6479
-0.94%
+9.96%
+11.6920
+11.5383
dollar/sweden
SEK=
10.7648
10.8193
-0.10%
+3.43%
+10.8695
+10.7660
Euro/Sweden
EURSEK=
11.8386
11.8503
-0.10%
+6.14%
+11.8985
+11.8380
world exchange rates https://tmsnrt.rs/2RBWI5E
(Reporting by Gertrude Chavez-Dreyfus; Additional reporting by Alan John in London and Ray Wee in Singapore; Editing by Jamie Freed, Ed Osmond, Emelia Sitor-Matterise, Will Dunham and Sharon Singleton)
((gertrude.chavez@thomsonreuters.com; 646-301-4124))
The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.
