U.S. Dollar Comes Under Pressure Following Inflation Data
January 12 2022 - 11:20AM
RTTF2
With traders reacting to the Labor Department's highly
anticipated consumer price inflation report, the U.S. dollar has
shown a notable move to the downside on Wednesday.
The U.S. dollar index is currently falling 0.68 points or 0.7
percent to 94.94 dropping to its lowest levels in two months.
The greenback is trading at 114.53 yen compared to the 115.30
yen it fetched at the close of New York trading on Tuesday. Against
the euro, the dollar is trading at $1.1449 compared to yesterday's
$1.1367.
While the Labor Department report showed the annual rate of
consumer price growth once again reached the highest level in
almost 40 years, traders seemed relieved the acceleration was not
even more significant.
The report showed the annual rate of consumer price growth
accelerated to 7.0 percent in December from 6.8 percent in
November, showing the biggest yearly jump since June of 1982.
Core consumer prices, which exclude food and energy prices, were
up by 5.5 percent year-over-year in December compared to the 4.9
percent spike in November. The annual growth reflected the biggest
surge since February of 1991.
The continued acceleration in the annual rate of consumer price
growth came as prices increased by slightly more than expected on a
monthly basis, although the pace of growth slowed from
November.
The Labor Department said its consumer price index rose by 0.5
percent in December following a 0.8 percent advance in November.
Economists had expected consumer prices to rise by 0.4 percent.
Core consumer prices increased by 0.6 percent in December after
climbing by 0.5 percent in November. Core prices were expected to
advance by 0.5 percent.
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