2024-01-12T05:12:05+00:00
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/ The dollar stabilized against similar currencies on Friday, as investors weighed higher-than-expected US currencies. Consumer price inflation versus market bets that the Fed will cut interest rates in March.
Consumer prices rose in December as rents continued their upward trend, rising by 0.3% during the month and by 3.4% year-on-year, versus economists’ expectations in a Reuters poll for increases of 0.2% and 3.2%, respectively.
However, traders expect a 73.2% chance of the first 25 basis point cut in March, with several more cuts to follow, according to CME Group’s FedWatch tool.
The dollar index is hovering around 102.26, down from Thursday’s high of 102.76, but well ahead of the five-month low of 100.61 hit in December when traders began aggressively pricing in a raft of federal cuts for this year.
The euro remained stuck around $1.0977 after rising against the dollar the previous day, while the British pound was last trading at $1.277, up 0.07% on the day.
There was little change in the Japanese yen at 145.27 yen to the dollar, but it remained far from the lowest level recorded on Thursday at 146.41, its lowest level since December.
In cryptocurrencies, Bitcoin rose in recent trading by 0.25% to $46,270.00, after rising to the highest level in two years overnight after US trading rose by 0.25%. The Securities and Exchange Commission on Wednesday gave the green light to introduce bitcoin-linked ETFs.
Ethereum fell slightly to $2,607.40 after touching its highest levels since May 2022 at $2,690.70 on Thursday.