U.S. dollar depreciated by peers; ECB’s stance on its monetary stimulus supported Euro

US Dollar increase

The U.S. dollar edged down against its major peers on early Friday as it was pulled down by the released factory inflation figures which came in lower than expected. Meanwhile, the euro was supported by the hints of ECB that it is ready to cut massive bond portfolio.

On the previous day, data showed that producer prices in the United States dropped for the very first time in almost 1-1/2 years last month. This could potentially temper the projections of a much faster inflation this year.

The index which tracks the value of the greenback versus its major opposing currencies, the U.S. dollar index, fell as low as 0.1 percent at 91.798 after hovering below its weakest level since September 20 of 91.751 notched last January 2. Due to the depressing data, the index is on track to decline more than 0.3 percent over the course of the week.

Looking at the dollar’s performance against its Japanese counterpart, it edged lower by 0.1 percent at 111.14 yen. In its last trade, the dollar slipped to its lowest level in six weeks at 111.05 yen. The greenback was also down by 1.7 percent for the entire week and the yen was lifted by the news that the Bank of Japan’s trimming of bond buying might mean that the bank would trim its monetary program

In other currency news, the euro added 0.3 percent at $1.2062 after rallying on reports that the European Central Bank (ECB) are equipped to trim their massive monetary stimulus.

FAQs

Leave a Reply

Your email address will not be published. Required fields are marked *