Close Menu
  • News
  • Stocks
  • Bonds
  • Commodities
  • Collectables
    • Art
    • Classic Cars
    • Whiskey
    • Wine
  • Trading
  • Alternative Investment
  • Markets
  • More
    • Economy
    • Money
    • Business
    • Personal Finance
    • Investing
    • Financial Planning
    • ETFs
    • Equities
    • Funds

Subscribe to Updates

Get the latest markets and assets news and updates directly to your inbox.

Trending Now

Spanish Supreme Court Orders Heirs to Return Cathedral Statues

June 20, 2025

Gaudi’s original vision for Casa Batlló has been restored

June 20, 2025

At 94, Isabella Ducrot Is Gaining Overdue Recognition for Her Tender Paintings

June 20, 2025
Facebook X (Twitter) Instagram
Facebook X (Twitter) Instagram
The Asset ObserverThe Asset Observer
Newsletter
LIVE MARKET DATA
  • News
  • Stocks
  • Bonds
  • Commodities
  • Collectables
    • Art
    • Classic Cars
    • Whiskey
    • Wine
  • Trading
  • Alternative Investment
  • Markets
  • More
    • Economy
    • Money
    • Business
    • Personal Finance
    • Investing
    • Financial Planning
    • ETFs
    • Equities
    • Funds
The Asset ObserverThe Asset Observer
Home»Economy
Economy

US dollar drifts higher after producer prices data By Reuters

News RoomBy News RoomFebruary 16, 2024
Share
Facebook Twitter LinkedIn Pinterest Email

© Reuters. FILE PHOTO: U.S. dollar banknotes are seen in this illustration taken March 10, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

By Gertrude Chavez-Dreyfuss and Stefano Rebaudo

NEW YORK/MILAN (Reuters) – The U.S. dollar edged higher on Friday after data showed producer prices in the world’s largest economy came in higher than expected, affirming expectations the Federal Reserve will hold off the start of its interest rate-cutting cycle to the middle of the year, or even later.

The U.S. currency’s gains were higher following the producer price index (PPI) data, but have since come off ahead of a long holiday weekend.

Tuesday’s report showed the PPI gained 0.3% in January, up from forecasts of a 0.1% rise. On a year-on-year basis, the PPI increased 0.9%, compared with expectations of a 0.6% rise.

The PPI data followed a stronger-than-expected consumer price index (CPI) as well last month, suggesting the Fed would be in no rush to cut rates.

{{2126|The do, a gauge of the greenback’s value against six major currencies, was on track for a fifth straight week of gains. It was last up 0.1% at 104.32. On the week, the index rose 0.2%.

“Year to date, the dollar has been stronger. But if you consider the strong jobs, inflation, and GDP (gross domestic product) numbers, you could make the argument that the U.S. dollar should be way higher than it is,” said Eugene Epstein, head of structuring for North America at Moneycorp in New Jersey.

“I just see sideways trading or a slow grind higher for the dollar as a more likely scenario,” he added.

Fed funds futures have priced in no rate cut in March and a 74% chance of easing at the June meeting, according to LSEG’s rate probability app. That was more than 80% on Thursday.

Two weeks ago, markets had expected the first rate cut to happen in May. Futures are also pricing in about three rate cuts of 25 basis points each this year, down from about five cuts two weeks earlier.

Against the yen, the dollar rose 0.2% to 150.22 yen. The currency pair has touched 150 the last few days, putting the market on high alert to possible Japan intervention to weaken the yen.

The Japanese currency, which is highly sensitive to U.S. rates, was down 6% against the dollar this year as investors pare back their expectations of rate cuts from the Fed.

Finance Minister Shunichi Suzuki said that while a weak yen has merits and demerits, he was “more concerned” about the negative aspects of a weak currency.

A separate report showed that U.S. single-family homebuilding dropped in January, likely due to harsh weather, but a rise in permits for future construction suggested a rebound is likely in the coming months.

Single-family housing starts, which account for the bulk of homebuilding, dropped 4.7% to a seasonally adjusted annual rate of 1.004 million units last month.

“With the Fed likely cutting rates by the end of the year and demand resilient, the housing activity should stay supported,” Citi’s U.S. economics team wrote in a research note.

The U.S. consumer sentiment survey was also released on Friday, but the currency market showed little reaction.

U.S. consumer sentiment was little changed in February while one-year inflation expectations inched up.

The University of Michigan’s preliminary reading on the overall index of consumer sentiment came in at 79.6 this month, compared with 79.0 in January. Economists polled by Reuters had forecast a preliminary reading of 80.0.

The survey’s reading of one-year inflation expectations edged up to 3.0% this month from 2.9% in January.

The euro was flat at $1.0771.

Read the full article here

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Keep Reading

What the UnitedHealth Assassination Revealed About American Elites

‘Quiet Panic’ as National Rental Assistance Program Set to Run Out of Cash

Live music seems recession-proof. Thank the ticket scalpers

The Democrats Are Going Extinct – A New Party Will Rise From The Ashes

My Weekly Reading for March 23, 2025

The Middle East Logistics Wars 

Links 3/22/2025 | naked capitalism

The Fed will update its rate projections Wednesday. What to expect

Tariffs and Inflation – Econlib

Recent Posts
  • Spanish Supreme Court Orders Heirs to Return Cathedral Statues
  • Gaudi’s original vision for Casa Batlló has been restored
  • At 94, Isabella Ducrot Is Gaining Overdue Recognition for Her Tender Paintings
  • Liste Art Fair 2025 Best Booths
  • The legacy of the Baghdad Modern Art Group is explored in first major US show

Subscribe to Newsletter

Get the latest markets and assets news and updates directly to your inbox.

Editors Picks

Gaudi’s original vision for Casa Batlló has been restored

June 20, 2025

At 94, Isabella Ducrot Is Gaining Overdue Recognition for Her Tender Paintings

June 20, 2025

Liste Art Fair 2025 Best Booths

June 20, 2025

The legacy of the Baghdad Modern Art Group is explored in first major US show

June 20, 2025

Former Janus Henderson analyst convicted of insider trading and money laundering

June 20, 2025
Facebook X (Twitter) Instagram
© 2025 The Asset Observer. All Rights Reserved.
  • Privacy Policy
  • Terms
  • Press Release
  • Advertise
  • Contact

Type above and press Enter to search. Press Esc to cancel.