NEW YORK (Reuters) – The dollar index fell slightly on Thursday in a volatile session that alternated between losses and gains as investors digested heightened US inflation data and comments from the European Central Bank.
After taking a wait-and-see attitude all week, sucking volatility out of the market and leaving major currencies mostly in range, Thursday’s news seemed to add a bit of new direction to the forex markets.
The European Central Bank has raised its outlook on growth and inflation, but has pledged to maintain sufficient stimulus, fearing that a retreat now will accelerate alarming increases in borrowing costs and halt the recovery.
Data showed that the number of Americans filing new jobless claims fell last week to their lowest level in nearly 15 months, while consumer prices continued to rise in May as the easing pandemic in the economy continued to spur domestic demand. …
The Dollar Index, which measures the dollar against a basket of major currencies, hovered in a narrow range around the psychologically important 90 level and was last down 0.08% to 90.058. The euro was last up 0.02% to $ 1.218.
“You have this tug between the two currencies and it creates a round trip exchange. This is why you see a small limit in terms of the weakness of the dollar and the strength of the euro, ”said Min Trang, senior foreign exchange trader at Silicon Valley Bank.
“The general trend was some weakness in the dollar, not only because of the steady growth in the US, but in general. The economies of many countries are recovering, ”he said. “When you have optimism about overall global growth, it usually creates a risk for a mentality that will favor currencies other than the dollar.”
The Australian dollar was up 0.25% to hit $ 0.7749 while the New Zealand dollar was up 0.33% to hit $ 0.7199.
The yen traded at 109.5850 per dollar, also slightly lower compared to Wednesday.
Deutsche Bank’s currency volatility index is at its lowest level since February 2020.
Investors monitored U.S. consumer prices closely for any signs that higher prices could last longer than expected, potentially calling into question the Federal Reserve’s insistence that current inflationary pressures are temporary and monetary stimulus should remain in effect for a while.
“People are digesting what the next step might be. Today’s data did not provide sufficient grounds for commitment to one side or the other, ”Trang said.
Traders boosted the yield on long-term US Treasuries after Thursday’s inflation data stepped up a closely watched portion of the yield curve.
In cryptocurrency markets, bitcoin retained its biggest gains since February on Wednesday, when it jumped nearly 12%.
It last traded slightly higher at $ 37,464 after rebounding from a three-week low of $ 31,025 hit Tuesday, when signs of caution from institutional investors and regulatory attention spurred selling.
The most famous cryptocurrency has been struggling since hitting an all-time high of $ 64,895.22 in mid-April.
Currency purchase prices at 10:03 (1403 GMT)
RIC Description Last US Close Percent,% YTD Change, Interest Rate High Rate Low Rate
Dollar index 90.0580 90.1400 -0.08% 0.086% +90.3210 +90.0080
Euro / Dollar $ 1.2180 $ 1.2179 + 0.02% -0.30% + 1.2194 $ + 1.2144 $
Dollar / Yen 109.5850 109.6300 -0.04% + 6.06% +109.7900 +109.4500
Euro / Yen 133.46 133.53 -0.05% + 5.15% +133.7500 +133.1200
Dollar / Switzerland 0.8947 0.8960 -0.12% + 1.15% +0.8991 +0.8946
Sterling / US $ 1.4157 US $ 1.4114 + 0.30% + 3.62% + US $ 1.4159 + US $ 1.4074
Dollar / CAD 1.2092 1.2110 -0.16% -5.06% +1.2124 +1.2077
AUD / USD 0.7749 USD 0.7731 + 0.25% + 0.75% + 0.7757 USD + 0.7719 USD
Euro / Swiss 1.0897 1.0909 -0.11% + 0.83% +1.0925 +1.0897
Euro / Sterling 0.8603 0.8625 -0.26% -3.74% +0.8642 +0.8597
NZ $ 0.7199 $ 0.7178 + 0.33% + 0.28% + $ 0.7206 + $ 0.7165
Dollar / dollar
Dollar / Norway 8.2775 8.2775 + 0.19% -3.42% + 8.3450 + 8.2750
Euro / Norway 10.0820 10.0807 + 0.01% -3.68% +10.1542 +10.0620
Dollar / Sweden 8.2573 8.2611 -0.02% + 0.74% +8.2873 +8.2535
Euro / Sweden 10.0590 10.0614 -0.02% -0.17% +10.0801 +10.0570
Additional reporting by Ritwik Carvalho in London, Kevin Buckland in Tokyo; editing by Elaine Hardcastle, Gareth Jones and Raisa Kasolovski