Dollar Steadies as Investors Digest Price Data

The dollar index remained relatively stable at 102.3 after experiencing sharp swings in the previous session as investors digested a slew of inflation data and assessed its implications for the Federal Reserve’s monetary policy outlook. The most recent PPI report unveiled an unexpected 0.1% decline in December, falling short of market expectations for a 0.1% rise. On a yearly basis, prices increased by 1%, accelerating from the previous month’s 0.8% but falling short of the anticipated 1.3%. The core rates also came in below consensus. Meanwhile, Thursday’s data indicated an uptick in the inflation rate to 3.4%, surpassing the forecasted 3.2%, while the monthly CPI rose 0.3%, exceeding expectations of 0.2%. Cleveland Fed President Loretta Mester remarked that the latest CPI figures suggest it would likely be too soon to consider rate cuts. In contrast, Richmond Fed President Thomas Barkin mentioned that the data did little to clarify the path of inflation.

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