2024-01-09T05:12:42+00:00
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/ The dollar paused its rise on Tuesday, as traders reiterated their bets on a series of interest rate cuts from the Federal Reserve this year based on the belief that US inflation is slowing enough.
In cryptocurrencies, Bitcoin is hovering near its strongest level since April 2022 amid growing anticipation for the impending approvals of Bitcoin exchange-traded funds (ETFs).
The euro reached $1.0950 in recent transactions, far from its lowest level in three weeks at $1.0877, while the Japanese yen distanced itself from the 145 level to the dollar after a widespread decline in the US currency with a decline in US Treasury bond yields, according to Reuters.
The moves were partly driven by the New York Federal Reserve’s recent survey of consumer expectations which showed the US economy growing faster than expected. Consumers’ expectations for short-term inflation fell to their lowest level in nearly three years in December.
US inflation reading is due later in the week, which will likely provide more clarity on how much room the Fed has to ease interest rates this year.
Futures point to the roughly 140 basis points of easing the Fed has priced in this year.
Against a basket of currencies, the United States, the dollar fell slightly by 0.08% to 102.22, after rising by 1% last week.
The British pound advanced 0.04% to $1.2754, while the risk-sensitive Australian and New Zealand dollars also rose.
The Australian dollar gained 0.04 percent to $0.6723, moving away from the lowest level in three weeks at $0.6641 recorded last Friday. The New Zealand dollar rose 0.05 percent to $0.6256 and was a similar distance from the three-week low recorded on Friday at $0.6182.
In Asia, data on Tuesday showed core inflation slowed in the Japanese capital for the second straight month in December, relieving some pressure on the Bank of Japan to speed up its exit from ultra-loose monetary policy.
The yen was little changed after the release, and was last up 0.17% at 143,975 to the dollar.
Elsewhere, bitcoin hovered near the $47,000 mark and was last settled at $46,923, after rising to a 21-month high of $47,281 in the previous session.
A raft of investment managers on Monday revealed the fees they plan to charge a bitcoin exchange-traded fund, in another step toward approval this week by the US Federal Reserve. Securities regulator.
Ethereum, the second largest cryptocurrency, settled at $2,314.70.