2024-01-18T09:01:35+00:00
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/ The dollar hovered near the highest level in a month against major currencies, on Thursday, after strong US retail sales data reinforced expectations that the Federal Reserve (US Central) would not accelerate the pace of interest rate cuts.
The dollar index, which measures the performance of the US currency against a basket of six competing currencies, fell slightly to 103.29 in Asian afternoon trading. The dollar index reached 103.69 on Wednesday for the first time since December 13.
The market is still anticipating potential cuts of 150 basis points by the end of the year, even as Federal Reserve officials, including Governor Christopher Waller, this week backed away from expectations of rapid monetary policy easing.
The dollar rose to 148.525 yen during the overnight hours for the first time since the end of November. But it fell 0.08 percent in the latest intraday trading at 148.04 yen.
The pound sterling settled at $1.26815 following a rise on Wednesday after data showed inflation unexpectedly accelerated in December, reinforcing expectations that the Bank of England will be slower to cut interest rates than its counterparts.
The Australian dollar also stabilized at 0.65545 US dollars, after recovering from sharp losses of 0.04 percent to 0.65255 US dollars earlier when data showed an unexpected decline in employment in December, which strengthened the belief that interest rates had reached their peak in the country.