Dollar falling or is it a correction?
2022.11.16 03:28
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Dollar falling or is it a correction?
Budrigannews.com -The US dollar weakened in early European trading Wednesday and withdrew overnight gains, with Western officials downplaying the importance of a deadly missile attack on a Polish town and demanding not to escalate tensions with Russia.
02:55ET (07: 55GMT),which tracks the dollar against other currencies,fell 0.3% to 106.013 and rose as high as 106.76 earlier Wednesday.
Safe haven Dollar was eyeing the proposal Wednesday morning after news broke that a Russian-made rocket killed two people in a Polish village near the Ukrainian border,raising fears of an escalation of the war in Ukraine.
However, Moscow denied responsibility for the attack, and the US president said that preliminary information suggested that the weapon was not fired by Russia, although the investigation is ongoing.
The dollar has experienced a sell-off on Tuesday,following the release of a weaker-than-expected rise, which is likely close to ending as aggressive rate hikes move forward.
“We think it’s too early to expect continued weakness in the US dollar,and the US dollar remains at its peak at the end of the 23rd quarter.”
“We want to see a few consecutive months of positive inflation before the Fed considers a change to a more moderate stance. In addition, the Fed can see signs of cooling in the labor market. However, recent data still point to strong job growth,low unemployment and rapid wage growth.”
Elsewhere it traded flat at 1.1858 after data showed UK inflation rose to a new decades high in January, driven by rising food and energy prices.
The CPI rose compared to the previous year,exceeding expectations of 1.7% monthly and 10.7% annual.
The figures point to further interest rate hikes and will disappoint the UK government as it prepares to announce new tax and spending plans for the next few years on Thursday.
Risk-sensitive rose 0.1% to 0.6763,near a three-month high,while it rose 0.4% to 1.0389, remaining high despite rising geopolitical tensions.
The renminbi rose 0.2 percent to 139.62 and 0.5 percent to 7.0770,and was hit by data showing the yuan sank to a seven-year low in March.
This followed gloomy figures earlier this week, suggesting that the world’s second-largest economy is under pressure.
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