FOREX-Dollar droops as key US data looms; yen firms on CPI beat
From Nasdaq:
The dollar traded lower as investors awaited key U.S. economic data to gauge potential interest rate cuts. The yen strengthened after consumer inflation in Japan held steady at 2%, avoiding a decline below the target. Market expectations for a Fed rate cut have shifted to June from May due to strong U.S. economic data.
The U.S. dollar index remained flat at 103.78, as markets discounted a rate cut at the March Fed meeting. U.S. durable goods data and the personal consumption expenditures price index are upcoming. Analysts believe upcoming events could boost the dollar, despite recent consolidative trading.
Australian and New Zealand dollars weakened, with the Aussie slipping to $0.6533 and the kiwi easing to $0.6161. The Reserve Bank of New Zealand has a policy meeting this week, with a chance for a rate hike to address inflation concerns. Bitcoin hit a two-year peak of $54,969 after MicroStrategy bought more tokens.
The dollar fell to 150.54 yen following Japan’s slightly higher-than-expected January consumer price index. The euro and sterling held steady at $1.0847 and $1.26825, respectively. Traders are monitoring currency movements as global central banks navigate economic challenges.
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