Against major currencies. US dollar at 5-month low, 23 DEC

 Against major currencies. US dollar at 5-month low

Baghdad Today - Follow-up

The US dollar fell against a group of major currencies around the world, on Friday (December 22, 2023), recording its lowest level in nearly five months, affected by data from the slowdown in annual inflation in the United States in November, which reinforced Market expectations about a US interest rate cut in March.

As of November, inflation in America, according to the PCE price index, stood at 2.6 percent, down from 2.9 percent in October.

Excluding volatile food and energy components, the core PCE price index rose 3.2 percent year-on-year in November, the smallest rise since April 2021

The dollar index fell 0.13 percent in the latest trade to 101.65, its lowest level since late July.

The index has fallen more than two percent over the past two weeks and is heading to end the year down just under two percent.

Sterling rose 0.28 percent to $1.2728 as traders digested data showing British retail sales in November jumped more than expected, but third-quarter GDP was revised downwards.

The dollar rose 0.18 percent against the yen in the latest trade to 142.37 yen, after data from core inflation in Japan slowed sharply in November.

The risk-sensitive Australian and New Zealand dollars traded higher during the day. The Australian dollar rose 0.12 percent to $0.6811 after earlier touching $0.6825, the highest level since July.

The New Zealand dollar traded 0.24 percent higher at $0.6309, also a five-month high.