???? Dollar Nears 8-Month Low

15Aug2024

The dollar caught its breath on Thursday, hovering around 102.7 and settling at 102.59, close to its eight-month low, as US inflation cooled and rate cut expectations firmed. The annual inflation rate slowed to 2.9% in July from 3% in June, defying expectations and marking the lowest level since March 2021. Core inflation held steady, and producer prices increased just 0.1%, falling short of forecasts.

Markets React to Inflation Data

1. Dollar in Neutral: Dollar index at 102.7, settling at 102.59.
2. Yen Holds Steady: Yen steady at 147.315 per dollar as Japan’s economy zoomed ahead with a 3.1% annualized Q2 growth.
3. Euro Climbs Higher: Euro hovered close to $1.10475, its highest since January, up 0.86% for the week.
4. Sterling Softens: Sterling at $1.28375 after softer UK inflation data.
5. Kiwi and Aussie Rise: New Zealand dollar up 0.13% at $0.60035; Australian dollar up 0.42% at $0.6624