U.S. dollar tanks as post-Fed momentum continues-Xinhua

U.S. dollar tanks as post-Fed momentum continues

Source: Xinhua

Editor: huaxia

2023-12-15 06:42:45

NEW YORK, Dec. 14 (Xinhua) -- The U.S. dollar continued to suffer substantial losses on Thursday, after investors rotated out of momentum growth stocks following the U.S. Federal Reserve's dovish pivot.

The dollar index, which measures the greenback against six major peers, was down 0.88 percent to 101.9642 in late trading, hitting its weakest position since August.

Investors and traders continued to digest the Federal Reserve's interest-rate projections and policy update, released on Wednesday, as the U.S. Treasury yields slid to fresh multi-month lows Thursday, with the 10-year rate falling to as low as 3.91 percent.

U.S. retail sales unexpectedly rose 0.3 percent in November as the holiday shopping season got off to a brisk start, further alleviating fears of a recession, the U.S. Commerce Department reported on Thursday.

"The rebound in retail sales in November provides further illustration that the continued rapid decline in inflation is not coming at the cost of significantly weaker economic growth," said Andrew Hunter, deputy chief U.S. economist at Capital Economics.

The CME FedWatch Tool projections suggest that markets foresee rate cuts as early as March 2024.

Both the European Central Bank and Bank of England decided to keep their main interest rates unchanged on Thursday, though each also gave signals that cuts are not imminent. In late New York trading, the euro increased to 1.0991 dollars from 1.0886 dollars in the previous session, and the British pound was up to 1.2755 dollars from 1.2621 dollars in the previous session.

The U.S. dollar bought 141.9480 Japanese yen, lower than 143.1550 Japanese yen of the previous session. The U.S. dollar was down to 0.8662 Swiss francs from 0.8694 Swiss francs, and it fell to 1.3409 Canadian dollars from 1.3499 Canadian dollars. The U.S. dollar decreased to 10.2349 Swedish kronor from 10.2928 Swedish kronor.