The U.S. dollar stayed nearly flat in late trading on Monday, as investors were waiting for the U.S. Consumer Price Index (CPI) on Tuesday and the U.S. Federal Reserve (Fed) rate call on Wednesday.
The dollar index, which measures the greenback against six major peers, increased 0.08 percent to 104.0952 in late trading.
The median expectation is that the inflation rate will be up 3.4 percent one year from now, according to the New York Federal Reserve’s Survey of Consumer Expectations on Monday, down from a high of 7.1 percent recorded in June 2022. It marks the lowest reading since April 2021, but consumers anticipate that it will take longer for price growth to slow in the longer term.
“Median inflation uncertainty – or the uncertainty expressed regarding future inflation outcomes – fell at the one-year ahead horizon, increased slightly at the three-year ahead horizon, and remained unchanged at the five-year ahead horizon,” the survey said.
According to the CME FedWatch Tool, market anticipation indicates no hike for Wednesday’s meeting. However, the markets are pricing in less easing for 2024.
In late New York trading, the euro rose to 1.0762 dollars from 1.0758 dollars in the previous session, and the British pound increased to 1.2556 dollars from 1.2549 U.S. dollars in the previous session.
The U.S. dollar bought 146.1580 Japanese yen, higher than 144.9790 Japanese yen of the previous session. The U.S. dollar fell to 0.8784 Swiss francs from 0.8804 Swiss francs, and it fell to 1.3569 Canadian dollars from 1.3584 Canadian dollars. The U.S. dollar was up to 10.4917 Swedish kronor from 10.4714 Swedish kronor.
