Business

US dollar takes significant fall after cooler-than-expected inflation

CPI up by 0.1% last month, below 0.3% consensus, reports Labour Department

Updated 3 years ago · Published on 14 Dec 2022 12:00PM

US dollar takes significant fall after cooler-than-expected inflation
According to experts, while there were signs of easing in price pressures, further solid progress against inflation is needed before the Federal Reserve can comfortably assume it is tracking back to 2%. – Pixabay pic, December 14, 2022

NEW YORK – The US dollar weakened significantly in late trading yesterday after data showed US consumer inflation rose less than expected in November, reported Xinhua.

The headline US consumer price index (CPI) rose 0.1% last month, below the 0.3% consensus, for a 7.1% year-on-year increase, the Labour Department reported yesterday.

The core CPI, which excludes food and energy, rose 0.2%, also below the 0.3% consensus, for a 6% year-on-year increase.

While there were signs of easing in price pressures, further solid progress against inflation is needed before the Federal Reserve can comfortably assume it is tracking back to 2%, according to experts.

The dollar index, which measures the greenback against six major peers, fell 1.09% to 103.9840 in late New York trading.

The euro was up to US$1.0639 from US$1.0525 in the previous session, and the British pound rose to US$1.2374 from US$1.2260 in the previous session.

The US dollar bought 135.49 Japanese yen, lower than 137.76 Japanese yen of the previous session. The US dollar decreased to 0.9287 Swiss francs from 0.9370 Swiss francs, and it was down to 1.3557 Canadian dollars from 1.3637 Canadian dollars. The US dollar was down to 10.2114 Swedish kronor from 10.3423 Swedish kronor.

In Chicago, gold futures on the Comex division of the New York Mercantile Exchange rose yesterday on lower-than-expected inflation data.

The most active gold contract for February delivery rose US$33.2, or 1.85%, to close at US$1,825.5 per ounce.

This is the highest finish for gold since June 24.

Silver for March delivery rose 58.7 cents, or 2.51%, to close at US$23.99 per ounce. Platinum for January delivery rose US$30.9, or 3.07%, to close at US$1,038.9 per ounce. – Bernama, December 14, 2022

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