Dollar strengthens against world currencies in anticipation of data from US

The value of the US dollar against other major world currencies rose on February 13 morning, as investors are waiting for the publication of statistics on inflation in the United States on February 14, Report informs referring to the auction data.

The euro against the dollar fell to $1.0666 from the previous close of $1.0675, the dollar against the yen rose to 132.19 yen from 131.41 yen. The dollar index (the exchange rate against a basket of currencies of six US trading partners) increased by 0.15% to 103.78 points.

The US inflation statistics for January is an important event of the week. Experts predict another decline in the annual rate, to 6.2% from 6.5% a month earlier. The slowdown in prices could be the seventh in a row after peaking at almost 9%, and the rate is the lowest since the second half of 2021, but inflation remains well above the target of 2%.

According to CME Group, 90.8% of analysts expect another increase in the discount rate in the US in March, again by 25 basis points, to 4.75-5% per annum. This hike is noticeably smaller than most of the rate hikes last year, and inflation data should suggest further action by the US Federal Reserve on the rate.

Fed Chairman Jerome Powell said that there is only an early stage of reducing inflation, and the Fed will continue to monitor incoming data and, based on this information, make a decision on the rate.