The dollar is stable amid increasing expectations to stop raising interest rates
Ammon – The dollar stabilized on Friday, amid growing expectations that the Federal Reserve (the US central bank) will end the cycle of raising interest rates, after data showed a moderate rise in consumer prices in the United States in July, while the yen hovered near a key threshold at 145 per dollar.
The yen fell 0.10% to 144.89 per dollar in early Asian trading, its lowest level since June 30, when it breached the 145 level against the dollar, which raised investors’ fears of another round of interventions by the Japanese authorities.
And Japan intervened in September last year when the dollar rose and exceeded 145 yen.
The yen also fell against the euro to 159.135, which is just below the 15-year peak touched Thursday at 159.19.
Data published yesterday showed that the consumer price index in the United States rose 0.2% last month, the same rate recorded in June, while the index increased 3.2% in July on an annual basis.
Slowing inflation, along with slowing job growth, reinforced experts’ expectations that the US central bank would be able to manage a “soft landing” for the economy.
The dollar index, which measures the US currency against six competing currencies, fell 0.078% to 102.54, but is heading for gains for the fourth consecutive week.
The euro rose 0.08% to 1.0988 per dollar.
The Australian dollar rose 0.20% to $0.6534.