Dollar rises from its lowest levels in 3 months

The dollar rose from its lowest level in three months on Thursday, but it is still on track to record the largest monthly decline in a year, as investors increase bets that the Federal Reserve (the US central bank) has finished raising interest rates, before the release of a decisive report on inflation in… Later on Thursday.

The euro fell after French consumer price data missed expectations, a day after data showed a slowdown in price growth in Germany and Spain as well.

The dollar index, which measures the performance of the US currency against six competing currencies, rose 0.35 percent to 103.18 points from 102.46 points recorded on Wednesday, which was its lowest level since August 11.

The index is still down about 3.3 percent in November as expectations increase that the Federal Reserve will cut interest rates in the first half of 2024.

Investors are awaiting the speech of Federal Reserve Chairman Jerome Powell on Friday, after Christopher Waller, a member of the US central bank’s board, announced on Tuesday a possible cut in interest rates in the coming months.

But before that, the spotlight will be on the Personal Consumption Expenditures price index, which will be released on Thursday.

The dollar rose after inflation in France continued to decline in November, which affected the euro and gave a boost to the US currency.

The euro fell 0.43 percent against the dollar to $1.0921. On Wednesday, it rose to the highest level since August at $1.1017.

On Thursday, the yen rose 0.07 percent to 147.085 against the dollar.

The British pound fell 0.25 percent to $1.2664 in the latest trading.

The Australian dollar rose 0.08 percent to $0.6622 and rose 4.5 percent in November, achieving its largest single-month gain in a year.