NEW YORK, Dec. 14 (Xinhua) — The U.S. dollar continued to undergo substantial losses on Thursday, after buyers rotated out of momentum progress shares following the U.S. Federal Reserve’s dovish pivot.
The dollar index, which measures the buck in opposition to six main friends, was down 0.88 % to 101.9642 in late buying and selling, hitting its weakest place since August.
Investors and merchants continued to digest the Federal Reserve’s interest-rate projections and coverage replace, launched on Wednesday, because the U.S. Treasury yields slid to contemporary multi-month lows Thursday, with the 10-year charge falling to as little as 3.91 %.
U.S. retail gross sales unexpectedly rose 0.3 % in November as the vacation procuring season received off to a brisk begin, additional assuaging fears of a recession, the U.S. Commerce Department reported on Thursday.
“The rebound in retail sales in November provides further illustration that the continued rapid decline in inflation is not coming at the cost of significantly weaker economic growth,” mentioned Andrew Hunter, deputy chief U.S. economist at Capital Economics.
The CME FedWatch Tool projections counsel that markets foresee charge cuts as early as March 2024.
Both the European Central Bank and Bank of England determined to maintain their predominant rates of interest unchanged on Thursday, although every additionally gave alerts that cuts aren’t imminent. In late New York buying and selling, the euro elevated to 1.0991 {dollars} from 1.0886 {dollars} within the earlier session, and the British pound was as much as 1.2755 {dollars} from 1.2621 {dollars} within the earlier session.
The U.S. dollar purchased 141.9480 Japanese yen, decrease than 143.1550 Japanese yen of the earlier session. The U.S. dollar was all the way down to 0.8662 Swiss francs from 0.8694 Swiss francs, and it fell to 1.3409 Canadian {dollars} from 1.3499 Canadian {dollars}. The U.S. dollar decreased to 10.2349 Swedish kronor from 10.2928 Swedish kronor.