NEW YORK, Dec 23 — The US dollar lost in late trading on Friday, as statistics showed a decline in annual US inflation to below three per cent in November, reinforcing market forecasts of an interest rate reduction in March, reported Xinhua.
Over the 12 months leading up to November, the inflation rate measured by the personal consumption expenditures (PCE) price index decelerated to 2.6 per cent, down from October’s 2.9 per cent.
Excluding food and energy, the core PCE price index climbed 3.2 per cent year-on-year in November, marking the slowest increase since April 2021. The Federal Reserve monitors the PCE price indices concerning its targeted two per cent inflation rate.
“The market will view the data as very much adding weight to the Fed’s recent tilt towards an easier monetary stance,” said Stuart Cole, chief macro economist at Equiti Capital.
In late New York trading, the euro rose to US$1.1014 from US$1.0998 in the previous session, and the British pound was up to US$1.2702 from US$1.2684 in the previous session.
The US dollar bought 142.5000 Japanese yen, higher than 142.2700 Japanese yen of the previous session. The US dollar decreased to 0.8560 Swiss francs from 0.8570 Swiss francs, and it fell to 1.3260 Canadian dollars from 1.3293 Canadian dollars. The US dollar fell to 10.0090 Swedish kronor from 10.0989 Swedish kronor.
