US Dollar rose, but near Five-Month Low Ahead of U.S. Inflation Data

The US dollar rose in Asia on Thursday morning but still remained at a five-month low. And fully focused on US inflation data and the European Central Bank (ECB) policy decision-making. Reported Investing.com

As of 90.183 PM ET (4:13 AM GMT), the U.S. is tracking the greenback against the basket of other currencies.

  • The dollar index rose 0.07% to 12:13.
  • The USD / JPY pair fell 0.05% to 109.56.
  • The AUD / USD pair rose 0.05% to 0.7733
  • The NZD / USD pair rose 0.06% to 0.7183 and
  • The USD / CNY pair fell 0.01% to 6.3856.

People’s Bank of China Governor Yi Gang estimates that consumer inflation will be less than 2% in 2021, which is less than the government’s official target of less than 3% in Shanghai.

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The economy is operating within a reasonable range close to the level of potential productivity, and prices as a whole are manageable.

Also Read: Abu Dhabi restricts entry of vaccinated people to public places, Malls, Restaurants

  • The GBP / USD pair fell 0.04% to 1.4112.

The movements were small as investors continued the wait-and-see approach, which also eliminated some market volatility.

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U.S. Consumer Price Index for May Inflation data came in the wake of a previous month’s report in April that consumer prices had risen by the largest margin in 12 years.

According to the Investing.com site that the forecast to grow 0.4%, with higher prices expected to remain higher than expected. The U.S. says inflationary pressures are temporary. Also calls for the Federal Reserve’s recent insistence.

Despite adhering to a narrower scope than greenback data, the benchmark is 10 years U.S. Treasury yields fell last week, from 1.6350% last Friday to 1.874% in the Asian session.

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“The balance of risk seems to be bent against the consensus against the US CPI, which is favorable to sell in the treasuries so that higher yields and then a stronger dollar… bonds seem to have been bought higher,” research Chris Weston said in a note.

Before the Central Bank, investors will look for signs that the ECB will begin purchasing its assets in its policy decision.

Although it is widely believed that the central bank will maintain the status quo on its policy, any signs of tapping will affect the movement of the euro.

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The single currency rose to a one-week high of 22 1.2218 on Wednesday, before moving slightly higher and was at 17 1.2178 marks at the start of the Asian session.

Investors are also awaiting the Fed’s policy decision, which will be given next week.

In the cryptocurrency space, Bitcoin has made gains from the biggest rally in four months. It was the last trading at 37,097.02 marks after rising nearly 12% on Wednesday.

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Kaleem Shaik

Kaleem Shaik writes about international affairs News for Mykuwaits, out of Kuwait. Kaleem Shaik is a senior reporter for Mykuwaits.com and has frequently written about international affairs, latest developments around the world. Kaleem Shaik is available on Facebook at @shaik.kaleemullah.98, Please send in your leads and tips.
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