Currency – The dollar is advancing on the inflation dull after Tillerson


© Reuters. Currency – The dollar is advancing on the inflation dull after Tillerson

Investing.com – The dollar rose on Wednesday against the other major currencies, but the gains have been hampered by data inflation drab and concerns over political instability following the dismissal suddenly the u.s. secretary of State Rex Tillerson.

The dollar index, which measures the strength of the dollar against a basket of six major currencies, rose slightly to 89,77 at 04:40 AM (08:40 GMT).

The index ended the previous session in the drop after the Labor department reported Tuesday that the inflation of consumer prices in the United States remained low in February, indicating that the federal Reserve is expected to maintain a gradual pace of interest rate increases this year.

The inflation data came after the jobs report last week showed wage growth tepid, dampening fears of a rebound faster than expected inflation.

Some investors had speculated that a strong reading of inflation could prompt the Fed to increase its planned pace of interest rate increases above the three planned at the December meeting of the banks.

The Fed will hold a policy meeting to two days from next Tuesday and is expected to greatly raise rates for the first time this year.

The dollar has suffered selling pressure further after president Donald Trump has returned Tuesday to the secretary of State Rex Tillerson on Twitter, the replacement by the director of the CIA, Mike Pompeo.

The news has undermined investor confidence in the u.s. currency.

The dollar gained ground against the euro, with EUR / USD sliding 0.10% to 1,2378.

The dollar was slightly higher than the yen, with the USD / JPY slightly up to 106,66.

The yen has been pressured since the beginning of the week in a scandal of cronyism increasingly important linked to the japanese Prime minister Shinzo Abe and his wife who were selling public lands.

The scandal has raised concerns about the ability of Eba to continue its policy Abenomics, which include monetary easing aggressive.

The book was a little more affected, with GBP / USD dipping 0.09% to 1,3950.

Leave a Reply