NEW YORK, June 27 (Xinhua) — The U.S. dollar weakened on Tuesday as hawkish feedback from European Central Bank (ECB) President Christine Lagarde strengthened expectations of extra rate of interest hikes in Europe.
The dollar index, which measures the dollar in opposition to six main friends, decreased 0.20 p.c to 102.4918 in late buying and selling.
Inflation within the euro space is just too excessive and is about to stay so for too lengthy, stated Lagarde at a central financial institution assembly in Portugal on Tuesday.
Meanwhile, the U.S. client confidence index elevated in June with customers’ inflation expectation hitting the bottom stage since December 2020.
The Conference Board reported Tuesday that its client confidence index rose to 109.7 in June from 102.5 in May. That’s the very best the studying has been since January 2022 and far larger than economists had forecast. A studying underneath 80 typically alerts a recession within the coming 12 months. Consumers’ 12-month inflation expectations dipped to six.0 p.c in June, the bottom studying since December 2020, from 6.1 p.c in May.
Moreover, the Federal Housing Finance Agency report confirmed month-to-month home costs rising 0.7 p.c in April after gaining 0.5 p.c in March. Prices elevated 3.1 p.c within the 12 months by April after advancing 3.7 p.c in March.
“Strength in housing suggests risks for the Fed’s goal of a return to 2 percent inflation over the medium term,” stated Veronica Clark, an economist at Citigroup in New York. “Housing strength over the summer also supports our base case of further rate hikes sooner rather than later.”
In late New York buying and selling, the euro rose to 1.0960 U.S. {dollars} from 1.0915 {dollars} within the earlier session, and the British pound was as much as 1.2751 U.S. {dollars} from 1.2721 {dollars} within the earlier session.
The U.S. dollar purchased 144.0130 Japanese yen, larger than 143.4470 Japanese yen of the earlier session. The U.S. dollar decreased to 0.8931 Swiss franc from 0.8949 Swiss franc, and it rose to 1.3182 Canadian {dollars} from 1.3145 Canadian {dollars}. The U.S. dollar was right down to 10.7178 Swedish Krona from 10.7211 Swedish Krona.