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The dollar falls despite a slight rebound in US inflation

London (awp/afp) – The dollar fell on Wednesday after several economic indicators in the United States, including a slowdown in growth and an expected small increase in inflation in October, which did not dispel expectations of a new drop in US rates in December.

Around 3:50 p.m. GMT (4:50 p.m. in ), the American currency lost 0.81% against the euro, to 1.0575 dollars, and fell by 0.91% against the pound, to 1.2685 dollar.

In October, the PCE index in the United States, a reference inflation indicator for the Federal Reserve (Fed), rebounded to 2.3% over one year, in line with economists’ expectations, compared to 2.1% over one year. one year in September.

This slight rebound in inflation, already priced in by the market, has not shaken investors’ conviction in a further rate cut of a quarter of a percentage point at the next meeting of the American central bank in December. , notes Kathleen Brooks, analyst at XTB.

This measure “suggests that the Fed is right to maintain a cautious approach to lowering rates, but continues to support a gradual easing of Fed policy”, underlines the analyst.

Published on Tuesday, the minutes of its last meeting in early November already suggested a gradual approach.

Furthermore, US gross domestic product (GDP) growth slowed to 2.8% annualized in the third quarter, compared to 3% year-on-year in the previous quarter.

The greenback fell 1.36% against the Japanese currency, to 150.99 yen per dollar, with the market expecting a new rate increase from the Bank of Japan (BoJ). in December.

The American currency is also struggling against the Mexican peso and the Canadian dollar.

After Donald Trump’s promises Monday evening to implement 25% customs duties on imports from Mexico and Canada, the Mexican peso fell Tuesday to its lowest since August 2022 against the dollar, and the dollar Canadian had reached its lowest level since April 2020.

For its part, the Russian ruble continued its fall that began several days ago on Wednesday, against a backdrop of escalating Russian-Western tensions around Ukraine and new American sanctions, exceeding for the first time since mid-March 2022 the threshold of 110 rubles to the dollar.

Around 3:50 p.m. GMT, the Russian currency fell by 6.90%, to 113.15 rubles per dollar.

        Cours de mercredi Cours de mardi          15H50 GMT               22H00 GMT  EUR/USD 1,0575                  1,0489  EUR/JPY 159,68                  160,57  EUR/CHF 0,9313                  0,9298  EUR/GBP 0,8336                  0,8344  USD/JPY 150,99                  153,08  USD/CHF 0,8806                  0,8864  GBP/USD 1,2685                  1,2569  

afp/rp

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