The US dollar strengthened slightly on the prospect of a Fed rate hike –

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The US dollar edged up in late trading Thursday (Friday morning WIB).

New York ( – The United States (US) dollar inched up in late trading Thursday (Friday morning WIB), as investors saw a high probability of another interest rate hike by the Federal Reserve in early May, as US economic growth was weaker than expected in the first quarter is seen as not going to hinder the central bank’s move.

The dollar index, which measures greenbacks against six other major currencies, it was up 0.03 percent to 101.5015 in late trading.

In late New York trading, the euro fell to US$1.1025 from US$1.1038 of the previous session, and the British pound rose to US$1.2491 from US$1.2457 in the previous session.

The US dollar bought 133.9500 Japanese yen, higher than 133.52 Japanese yen in the previous session. The US dollar rose to 0.8940 Swiss franc from 0.8906 Swiss franc, and it decreased to 1.3602 Canadian dollars from 1.3646 Canadian dollars. The US dollar fell to 10.2951 Swedish krona from 10.3410 Swedish krona.

The Federal Open Market Committee has about an 87 percent chance of raising the federal funds rate another 25 basis points at its next monetary policy meeting in early May, according to data from the CME FedWatch Tool Thursday afternoon.

Market participants are focused on higher growth of the core personal consumption expenditures price index in the first quarter of this year, despite the US economic expansion slowing to 1.1 percent in the period, from 2.6 percent in the last quarter of 2022.

Despite weaker-than-expected US economic growth in the first quarter, the US dollar gained against other major currencies Thursday, said James Hyerczyk, senior market analyst with market information supplier FX Empire.

A separate report from the Labor Department on Thursday showed initial claims for unemployment benefits fell by 16,000 to a seasonally adjusted 230,000 for the week ended April 22. Economists had forecast 248,000 claims in the last week.

The report implies a still tight labor market and also supports expectations of a rate hike next week.

Also read: Dollar slips after better-than-expected Chinese economic data
Also read: Dollar slumps as US economic data weakens

Translator: Apep Suhendar
Editor: Budisantoso Budiman


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