Greenback Gets Boost After Inflation Data

US dollar is slightly higher today, following the latest inflation data. Also helping the greenback is a bit of risk aversion that seems to have returned ahead of what some expect will be a “Santa Claus rally” next week.

Greenback is a little higher today as the Federal Reserve begins its last two-day meeting of 2013 — and Ben Bernanke‘s last meeting as the Chair. Next year, Janet Yellen is expected to head up the Fed.

US dollar is getting a little help from inflation data, which indicates that the annual rate bumped up 1.2 per cent. The increase didn’t quite meet the expectations for 1.3 per cent, but it was still better than the 1.0 per cent seen in October.

This news underscores expectations that a taper is on the way for the Fed’s asset purchase program. While the dollar isn’t surging higher against its counterparts, it is showing modest gains. Greenback is helped along by lower stocks, which are contributing to a feeling of risk aversion, and lower gold prices.

At 15:59 GMT the US dollar index is up to 80.2120 from the open at 80.1140. EUR/USD is down to 1.3728 from the open at 1.3763. GBP/USD is also lower, falling to 1.6240 from the open at 1.6305. USD/JPY is down to 102.7280 from the open at 103.0135.

If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *