The dollar stabilizes ahead of US inflation data

Wednesday, May 29, 2024 - 09:30
Point Trader Group

On Wednesday, May 29, the dollar received support from growing expectations that the Federal Reserve will not cut interest rates until later this year, ahead of the release of important US economic data on inflation this week, while the yen touched its lowest levels in four weeks.

The price of the dollar rose after US Treasury bond yields rose following lackluster sales of two-year and five-year bonds, which raised doubts about the demand for US government debt instruments.

The euro fell 0.09% to $1.0848, but is on track to record its first monthly gain this year, at 1.7% this month. The British pound recorded 1.27525 in the latest trading, heading for a 2% rise in May.

There was no significant change in the dollar index, which measures the performance of the US currency against six major currencies, reaching 104.7 points, away from the lowest level in about two weeks at 104.33 that it touched yesterday, Tuesday. The index fell 1.5% in May.

The Australian dollar saw little change, recording $0.66485, after consumer price inflation in Australia unexpectedly rose to the highest level in five months in April, increasing the possibility of raising interest rates.

The yen touched a four-week low at 157.41 to the dollar early on Wednesday, as the Japanese currency returned to levels that led to suspicious interventions from Tokyo at the end of April and early May. In the latest trading, the yen reached 157.255 against the dollar.

Related Topics


Get financial advice from Point trader group experts.


For free expert financial advice, feel free to contact us.