The dollar fell against major competitors on Thursday, with the release of data in the United States, adding to risk appetite. US assets also tracked the movement of Treasury yields, which fell today. The dynamics benefited a large portion of emerging countries’ currencies, with a focus on Turkey, whose central bank today maintained the benchmark interest rate. Reversing the trend, the ruble fell in a session marked by US sanctions against Russia.
The DXY Index, which measures the dollar against six rival currencies, was down 0.01% at 91.684 points late this afternoon in New York. The euro, in turn, fell at $ 1.1973 in the late afternoon, capping DXY’s losses. The pound rose against the dollar at $ 1.3789. Against the yen, the dollar fell to 108.69 yen.
BK Asset notes that “the dollar has struggled to recover today, despite the strong US economic reports”. Retail sales in the country jumped 9.8% in March compared to February, well above analysts’ expectations. Jobless claims fell to 576,000, which is well below expectations of 710,000. “The positive data should have boosted the dollar, but there were very few buyers. Instead, the dollar followed lower Treasury yields,” says the asset manager.
“Although impressive, the data released today does little to lower the high Federal Reserve level to alter the course of a highly accommodative policy,” says Joe Manembo, a market analyst at Western Union. On the other hand, the Euro did not take advantage of the movement. “The vaccination campaign against the Corona virus in Europe will delay the economic recovery of the euro area, which will witness a late recovery compared to the United Kingdom and the United States,” according to Capital Economics, in a report.
In the first monetary policy decision since President Recep Tayyip Erdogan stepped in to power, Turkey’s Central Bank (CBRT) announced today that the country’s benchmark interest rate will be maintained at 19% – thus cutting the high interest cycle that has bothered the local CEO. . At the end of the afternoon, the dollar was down at 80,068 pounds.
The ruble topped most emerging currencies and weakened sharply, after Washington announced the imposition of a series of new sanctions on Russia, due to Moscow’s alleged interference in the US elections. In the late afternoon in New York, the dollar rose at 76,373 rubles. The Argentine peso also reversed the trend, amid the escalation of the Covid-19 virus and the announcement of price restrictions in the country, after the highest inflation in 18 months, published today. The dollar rose at 92.7552 pesos at the same time.
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