© Reuters. The dollar is advancing after the import price
Investing.com – The dollar rose on Thursday against a basket of currencies, boosted by data showing that import prices in the United States rose more than expected in February, fuelling expectations of a return of inflation this year.
The dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.17% to 89,91 at 09:02 AM (13:02 GMT).
The dollar found some support after the labor department reported that import prices rose 0.4% last month, compared to forecasts of a more modest increase of 0.3%.
The report was published after data earlier this week indicated regular earnings in the inflation of prices of consumer and producer last month, supporting expectations that the federal reserve will likely hold a gradual pace of interest rate increases this year.
The Fed is expected to raise its rates three times this year, the first increase expected at the monetary policy meeting next week.
At the same time, another report showed that unemployment claims fell last week, underscoring the continued strength of the labour market.
Separate reports showed that while manufacturing activity in the New York area rebounded in march, industrial activity in the Philadelphia region slowed slightly this month.
The dollar has been subjected to a lower pressure this week, concerns about trade protectionism and the political turmoil in Washington have weighed after the us president, Donald Trump has tried to impose tariffs on $ 60 billion.
Trade tensions had already started after Trump announced last week plans to impose duties on u.s. imports of steel and aluminum.
The dollar declined against the yen, with USD / JPY down 0.31% at 105,98, not far from the lowest price reached on the eve of 105,79.
The euro fell to its lowest level against the dollar, with a decline of 0.22% at 1,2340.
The british pound was also lower against the dollar, with GBP / USD losing 0.18% for trading 1.3939.