By Gertrude Chavez-Dreyfuss
NEW YORK (Reuters) – The dollar gained on Thursday, boosted by month-end buying, despite data showing signs of a slowing U.S. economy that suggested the Federal Reserve may be done raising interest rates and start easing by the middle of next year.
The dollar index, which measures the greenback’s value against six major currencies, rose 0.5% to 103.38. The index was on track to post its best daily gain in more than a month.
Analysts said the dollar benefited from month-end demand as investors squared up positions for November, a period that featured a sharp sell-off in the U.S. currency with the market pricing in rate cuts next year.
The dollar’s gains persisted despite reports that showed U.S. inflation continued to moderate in October and jobless claims rose in the latest week suggesting a slowing labor market.
Inflation as measured by the personal consumption expenditures (PCE) price index was unchanged in October after climbing 0.4% in September. In the 12 months through October, the PCE price index increased 3.0%. That was the smallest year-on-year gain since March 2021 and followed a 3.4% advance in September.
“If you are hoping (Fed Chair) Jay Powell continues to be hawkish in the coming months, the PCE services index is not your friend,” said Jamie Cox, managing partner, at Harris Financial Group in Richmond, Virginia.
“There is significant deceleration in inflation afoot. These data solidly mark the end of the rate cycle.”
Meanwhile, initial claims for state unemployment benefits increased 7,000 to a seasonally-adjusted 218,000 for the week ended Nov. 25. Economists had forecast 226,000 claims for the latest week.
========================================================
Currency bid prices at 9:28AM (1428 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index 103.3500 102.8200 +0.54% -0.135% +103.4500 +102.7100
Euro/Dollar $1.0917 $1.0969 -0.48% +1.88% +$1.0984 +$1.0908
Dollar/Yen 148.1000 147.2400 +0.60% +12.98% +148.2400 +146.8500
Euro/Yen 161.67 161.51 +0.10% +15.23% +161.7200 +160.6000
Dollar/Swiss 0.8751 0.8737 +0.18% -5.34% +0.8761 +0.8718
Sterling/Dollar $1.2629 $1.2695 -0.52% +4.42% +$1.2710 +$1.2613
Dollar/Canadian 1.3601 1.3589 +0.10% +0.39% +1.3626 +1.3568
Aussie/Dollar $0.6591 $0.6617 -0.41% -3.33% +$0.6650 +$0.6584
Euro/Swiss 0.9551 0.9585 -0.35% -3.48% +0.9590 +0.9550
Euro/Sterling 0.8642 0.8640 +0.02% -2.28% +0.8649 +0.8618
NZ $0.6144 $0.6156 -0.18% -3.22% +$0.6182 +$0.6137
Dollar/Dollar
Dollar/Norway 10.7580 10.6310 +1.03% +9.44% +10.7660 +10.6690
Euro/Norway 11.7412 11.6879 +0.46% +11.89% +11.7509 +11.6717
Dollar/Sweden 10.4998 10.3624 +0.90% +0.88% +10.5022 +10.3450
Euro/Sweden 11.4582 11.3560 +0.90% +2.81% +11.4642 +11.3576
(Reporting by Gertrude Chavez-Dreyfuss, additional reporting by Chibuike Oguh; Editing by Emelia Sithole-Matarise)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.