Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The US dollar rose Wednesday, July 14 to touch a three-month high against the euro and hit a one-week high against the Japanese yen, after rising US inflation spurred bets for a faster monetary tightening than Fed officials have indicated so far.
The New Zealand dollar jumped more than 1% to 70.235 US cents after the Reserve Bank of New Zealand said on Wednesday it would halt its large-scale asset purchase program, paving the way for an interest rate hike this year.
The US currency rose to 1.17720 dollars against the euro, reaching its highest level since the fifth of April for the second day in a row, and then fell 0.1% to 1.17860 dollars against the single currency.
The dollar also rose to 110.70 yen for the first time since July 7, before falling 0.1% to 110.50 yen.
The dollar index, which measures the performance of the US currency against a basket of six currencies, increased 0.1% to 92.705, after rising earlier to 92.832, slightly below the 92.844 level it reached last week for the first time since the fifth of April.
Consumer prices in the United States rose by the most in 13 years in June, at 5.4%, amid supply constraints and the continued rise in costs of travel-related services from their low levels during the pandemic.
Traders are now looking forward to Fed Chair Jerome Powell’s speech to Congress on Wednesday and Thursday for any indications of when to reduce stimulus and raise interest rates.
