← Go back Dec 12, 2023
LONDON, Dec 1 — The dollar edged lower today, while the euro rebounded slightly after steep overnight losses, as traders weighed data showing inflation was easing and looked ahead to a talk later in the day by US Federal Reserve Chair Jerome Powell. Softer inflation data in both the United States and the eurozone yesterday reinforced expectations that both central banks might be done raising interest rates in their battle against price rises and led traders to bet on earlier cuts next year. Goldman Sachs today said it now expects the European Central Bank (ECB) to deliver its first rate cut in the second quarter of 2024, compared to an earlier forecast of a cut in the third quarter of next year. Investors will have their sights trained on a talk due to be given by the Fed’s Powell later today for any clues about the future path of interest rates in the US. Currency movements were more muted today, after month-end trades yesterday contributed to bigger swings, analysts said. The US dollar index — which tracks the currency against six major counterparts — was last down 0.2 per cent at 103.3, after clocking its weakest monthly performance in a year in November. Mixed economic data across Europe failed to set the tone for the euro, with a survey showing a downturn in eurozone manufacturing activity eased slightly last month but remained deeply in the red. Britain also reported contraction in manufacturing, but an improved reading for a third straight month. The euro was last up 0.1 per cent at US$1.08990 (RM5.11), while sterling was up 0.3 per cent at US$1.26665. The dollar dipped 0.2 per cent versus the yen to 147.855 per dollar, putting the yen on course for its third straight week of gains and pulling it away from the near 33-year low of 151.92 it touched in the middle of November. Rising expectations of the Bank of Japan abandoning its ultra-easy monetary policy next year along with a drop in US yields have buoyed the Asian currency in the past few weeks. In cryptocurrencies, bitcoin continued to strengthen, gaining as much as 2.6 per cent to a fresh 18-month high of US$38,707. — Reuters
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