Latest news with #USConsumerPriceIndex
Business Recorder
13-06-2025
- Business
- Business Recorder
US dollar sinks as inflation cools
NEW YORK: The dollar slumped on Thursday as weaker-than-expected inflation data suggested the Federal Reserve could resume cutting interest rates sooner rather than later, while the safe-haven yen and Swiss franc benefited from rising Mideast tensions. The euro soared to its highest in almost four years against the dollar. The greenback also fell to a two-month low versus the Swiss franc and a roughly one-week low against the yen. Data showed US producer prices increased less than expected in May, restrained by lower costs for services like air fares, further undermining the dollar. Wednesday's data also indicated cooling inflation, with a lower-than-expected rise in the US Consumer Price Index. Vassili Serebriakov, FX analyst at UBS in New York, said higher tariffs are not showing just yet on inflation data, although he noted US growth seemed to be slowing. 'We already priced in two cuts for the Fed this year, which was less than two last week,' said Serebriakov. 'The data is seen as potentially opening the window for the Fed cutting either a little bit sooner or a little bit more.' Futures tracking the Fed's policy rate showed rising bets the US central bank will deliver a pair of back-to-back interest rate cuts starting in September. Before the data, bets were for a rate cut in September followed by one in December. Thursday's US data also indicated the number of Americans filing new applications for unemployment benefits was unchanged at higher levels last week as labor market conditions continued to steadily ease. Investors rushed into safe-haven assets, with geopolitical risks in focus after US President Donald Trump said some US personnel were being moved out of the Middle East because 'it could be a dangerous place' and that Washington would not allow Iran to develop a nuclear weapon. A cocktail of rising Middle East tensions and concern over the fragility of the US-China trade deal drew investors into safe-haven assets. Analysts noted that the dollar serves as a key barometer of trade talk sentiment, while geopolitical instability prompted investors to buy Swiss francs and the yen. In morning trading, the dollar was down 1% at 0.8128 Swiss francs, after dropping to 0.8104, the lowest since April 22. The dollar slid 0.7% to 143.68 yen. Earlier in the session, it fell to a one-week low. The euro reached its highest since October 2021 at $1.1632 and was last up 0.9% at $1.1587. Some analysts said the euro gained support from a hawkish European Central Bank, which hinted at a pause in its year-long easing cycle after inflation finally returned to its 2% target. However, ECB policymaker Isabel Schnabel said on Thursday the strong euro exchange rate is being driven safe-haven investors in a positive confidence shock in Europe, and not by interest rate differentials. 'The dollar has lost some of its safe-haven characteristics,' said UBS' Serebriakov. 'And I think the euro just benefits from that as being the second most important global reserve currency by far, the second most important trade invoicing currency, and really just the first kind of alternative to the dollar.'
The Print
12-06-2025
- Business
- The Print
Gold jumps Rs 820 to Rs 98,490/10 g; silver remains flat
However, silver prices traded flat at Rs 1,07,100 per kilogram (inclusive of all taxes) on Wednesday. The precious metal of 99.5 per cent purity appreciated by Rs 750 to Rs 98,000 per 10 grams (inclusive of all taxes). New Delhi, Jun 11 (PTI) Gold prices jumped Rs 820 to Rs 98,490 per 10 grams in the national capital on Wednesday due to fresh buying by retailers and stockists in line with firm global trends, according to the All India Sarafa Association. Meanwhile, spot gold in the international markets rose by USD 12.09 per ounce or 0.36 per cent to USD 3,334.69 per ounce. 'Gold edged higher…supported by safe-haven demand as traders expressed concerns about tariff-related uncertainty. 'This renewed uncertainty followed a federal appeals court ruling that allowed US President Donald Trump to continue imposing global tariffs,' HDFC Securities' Senior Analyst – Commodities Saumil Gandhi said. Gandhi also highlighted that these concerns overshadowed some of the optimism stemming from the positive trade talks between the US and China. During their two-day discussions in London, both parties agreed on a plan to ease trade tensions. According to commodities market experts, geopolitical tensions stemming from the Russia-Ukraine war and intensifying conflict in the Middle East are driving the demand for gold as a safe-haven asset. However, spot silver fell 0.5 per cent to trade at USD 36.34 per ounce in the global markets. Kotak Securities' AVP-Commodity Research Kaynat Chainwala said the focus of market participants will shift to the upcoming US Consumer Price Index data, which will be released later in the day, giving more insights into the monetary policy outlook. PTI HG SHW This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
The Star
12-06-2025
- Business
- The Star
Ringgit improves against greenback amid weaker US economic data
KUALA LUMPUR: The ringgit continues to strengthen against the greenback on Thursday, amid weaker United States (US) economic data, an analyst said. At 8 am, the local currency inched up to 4.2305/2405 against the dollar versus the yesterday's close of 4.2345/2370. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) slid 0.47 per cent to 98.631 points as the US inflation rate came in lower than expected. The US Consumer Price Index (CPI) came in at 2.4 per cent in May against consensus estimates of 2.5 per cent. The core CPI print was at 2.8 per cent versus 2.9 per cent in the consensus survey. "The short-term US Treasury fell as hope for interest rate cuts has gained momentum with the two-year yield dropping seven basis points to 3.95 per cent. "It appears that expectations for rate cuts would be in the spotlight. The current US Federal Reserve (Fed) chairman's term ends next May. US President Donald Trump is likely to appoint a Fed chief who aligns with his agenda, that is, to prescribe further monetary easing," he told Bernama. On that note, the DXY is likely to linger below 100 points for quite some time, which would benefit emerging market currencies, including the ringgit, he added. Mohd Afzanizam also expects the ringgit to trade on an upward trend in the range of RM4.22 and RM4.23. At the opening, the ringgit traded lower against a basket of major currencies. It depreciated against the Japanese yen to 2.9344/9415 from Wednesday's 2.9187/9207, weakened versus the British pound to 5.7399/7535 from 5.7166/7200 and fell vis-à-vis the euro to 4.8693/8808 from 4.8426/8454 previously. Meanwhile, the local currency traded mostly lower against its ASEAN peers. It inched up against the Indonesian rupiah to 260.1/260.8 from 260.4/260.6 at Wednesday's close and was unchanged against the Philippine peso at 7.57/7.59. However, the local note slid versus the Singapore dollar to 3.2953/3033 from 3.2925/2947 at yesterday's close and declined against the Thai baht to 12.9949/13.0333 from 12.9729/9870 previously. - Bernama
New Straits Times
12-06-2025
- Business
- New Straits Times
Ringgit improves against greenback amid weaker US economic data
KUALA LUMPUR: The ringgit continues to strengthen against the greenback on Thursday, amid weaker United States (US) economic data, an analyst said. At 8 am, the local currency inched up to 4.2305/2405 against the dollar versus the yesterday's close of 4.2345/2370. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) slid 0.47 per cent to 98.631 points as the US inflation rate came in lower than expected. The US Consumer Price Index (CPI) came in at 2.4 per cent in May against consensus estimates of 2.5 per cent. The core CPI print was at 2.8 per cent versus 2.9 per cent in the consensus survey. "The short-term US Treasury fell as hope for interest rate cuts has gained momentum with the two-year yield dropping seven basis points to 3.95 per cent. "It appears that expectations for rate cuts would be in the spotlight. The current US Federal Reserve (Fed) chairman's term ends next May. US President Donald Trump is likely to appoint a Fed chief who aligns with his agenda, that is, to prescribe further monetary easing," he told Bernama. On that note, the DXY is likely to linger below 100 points for quite some time, which would benefit emerging market currencies, including the ringgit, he added. Mohd Afzanizam also expects the ringgit to trade on an upward trend in the range of RM4.22 and RM4.23. At the opening, the ringgit traded lower against a basket of major currencies. It depreciated against the Japanese yen to 2.9344/9415 from Wednesday's 2.9187/9207, weakened versus the British pound to 5.7399/7535 from 5.7166/7200 and fell vis-à-vis the euro to 4.8693/8808 from 4.8426/8454 previously. Meanwhile, the local currency traded mostly lower against its ASEAN peers. It inched up against the Indonesian rupiah to 260.1/260.8 from 260.4/260.6 at Wednesday's close and was unchanged against the Philippine peso at 7.57/7.59. However, the local note slid versus the Singapore dollar to 3.2953/3033 from 3.2925/2947 at yesterday's close and declined against the Thai baht to 12.9949/13.0333 from 12.9729/9870 previously.
BusinessToday
12-06-2025
- Business
- BusinessToday
Ringgit Strengthens On Softer US Data, But Slips Against Key Regional, Major Currencies
The ringgit continued its upward momentum against the US dollar on Thursday morning, supported by weaker-than-expected US economic data, according to an analyst. At 8am, the local note stood at RM4.2305/2405 versus the greenback, slightly firmer than Wednesday's close of RM4.2345/2370. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) dropped 0.47% to 98.631 points, following a softer inflation print from the world's largest economy. 'The short-term US Treasury fell as hope for interest rate cuts has gained momentum, with the two-year yield dropping seven basis points to 3.95%,' he told Bernama. He added, 'It appears that expectations for rate cuts would be in the spotlight. The current US Federal Reserve (Fed) chairman's term ends next May. US President Donald Trump is likely to appoint a Fed chief who aligns with his agenda, that is, to prescribe further monetary easing.' The US Consumer Price Index (CPI) rose 2.4% in May, slightly below market expectations of 2.5%, while the core CPI came in at 2.8%, missing the 2.9% consensus forecast. Dr Afzanizam believes the DXY is likely to remain below the 100-point mark for some time, a trend that should favour emerging market currencies like the ringgit. He expects the ringgit to continue trading with an upward bias, likely fluctuating within the RM4.22–RM4.23 range in the near term. Despite its gains against the greenback, the ringgit traded lower against a basket of major currencies at the open. The local currency weakened against the Japanese yen to 2.9344/9415 from 2.9187/9207, slipped vis-à-vis the British pound to 5.7399/7535 from 5.7166/7200, and fell against the euro to 4.8693/8808 from 4.8426/8454. Among its ASEAN peers, the ringgit's performance was mixed. It inched higher against the Indonesian rupiah at 260.1/260.8 from 260.4/260.6, and was unchanged versus the Philippine peso at 7.57/7.59. However, it slid against the Singapore dollar to 3.2953/3033 from 3.2925/2947, and weakened against the Thai baht to 12.9949/13.0333 from 12.9729/9870 previously. Related
