2024-01-18T09:01:35+00:00
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/ The dollar hovered near its highest level in a month against major currencies on Thursday, after strong US retail sales data reinforced expectations that the Federal Reserve will not accelerate interest rate cuts.
The dollar index, which measures the greenback against a basket of six major currencies, was slightly lower at 103.29 in Asian afternoon trade. It had hit 103.69 on Wednesday for the first time since Dec. 13.
The market is still pricing in a potential 150 basis point cut 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 overnight for the first time since late November. But it was down 0.08 percent in the day’s latest trade at 148.04 yen.
Sterling was steady at $1.26815 after rising 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 peers.
The Australian dollar was also steady at $0.65545, recovering from a sharp 0.04 percent loss to $0.65255 earlier when data showed an unexpected fall in employment in December, reinforcing the view that interest rates in the country have peaked.