{"id":271850,"date":"2021-10-25T18:10:19","date_gmt":"2021-10-25T18:10:19","guid":{"rendered":"http:\/\/yorunoteiou.com\/?p=271850"},"modified":"2021-10-25T18:10:19","modified_gmt":"2021-10-25T18:10:19","slug":"forex-dollar-rally-pauses-as-investors-take-stock-of-inflation-anxiety-2","status":"publish","type":"post","link":"http:\/\/yorunoteiou.com\/?p=271850","title":{"rendered":"FOREX-Dollar rally pauses as investors take stock of inflation anxiety"},"content":{"rendered":"<p><p>By Hideyuki Sano<\/p>\n<\/p>\n<p>TOKYO, May 14 (Reuters) &#8211; The dollar took a breather on Friday but looks set to post weekly gains against a basket of currencies as investors try to assess the risk of U.S.<\/p>\n<p>inflation rising faster than expected and prodding the Federal Reserve to hike interest rates sooner.<\/p>\n<\/p>\n<p>A strong reading on U.S. wholesale prices and jobless claims on Thursday failed to spark a renewed uptick in Treasury yields, which some traders put down to the market already pricing in a degree of inflation worries.<\/p>\n<\/p>\n<p>Moreover, the Federal Reserve has been sticking to its script that its stimulus will be in place for some time to support the economy, with officials viewing a spike in inflation as transitory.<\/p>\n<\/p>\n<p>All the same, given the U.S.<\/p>\n<\/p>\n<p>economic normalisation is gathering steam, <a href=\"https:\/\/trade.forexbinaryoptions.pro\/UT53QI\">pocketoption binary options spot forex market<\/a> players say underlying inflation concerns will remain for now.<\/p>\n<\/p>\n<p>&#8220;Inflation will remain a big theme for markets in coming few months. The Fed says it will be transitory but markets are asking &#8216;what if it turns out not to be transitory,&#8221; said Yukio Ishizuki, senior strategist at Daiwa Securities.<\/p>\n<\/p>\n<p>In early Friday trade, the dollar index paused at 90.752 , sitting on a gain of 0.5% so far this week and keeping some distance from its 2-1\/2-month low of 89.979 set on Tuesday.<\/p>\n<\/p>\n<p>Against the yen, the dollar stood at 109.50 yen, off Thursday&#8217;s one-month high of 109.785.<\/p>\n<\/p>\n<p>The euro was fetching $1.2076, holding above Thursday&#8217;s low of $1.20515 while the British pound changed hands at $1.4047.<\/p>\n<\/p>\n<p>The U.S.<\/p>\n<\/p>\n<p>producer price index rose 0.6% in April after surging 1.0% in March. In the 12 months through April, the PPI shot up 6.2%. That was the biggest year-on-year rise since the series was revamped in 2010 and followed a 4.2% jump in March.<\/p>\n<\/p>\n<p>A separate report showed the number of Americans filing new claims for unemployment benefits dropped to a 14-month low of 473,000.<\/p>\n<\/p>\n<p>Strong data, coming after a stunning jump in consumer inflation announced on Wednesday, added to the evidence inflationary pressure is building up in the United States as vaccine rollouts prompts economic normalisation.<\/p>\n<\/p>\n<p>On Thursday, however, U.S.<\/p>\n<\/p>\n<p>bond yields dipped, with the 10-year Treasuries yield slipping to 1.651% after hitting a five-week high of 1.707%.<\/p>\n<\/p>\n<p>In crypto currencies, bitcoin flirted with 2-1\/2-month lows after Tesla Inc chief Elon Musk reversed his stance on accepting the digital currency and on news of a U.S.<\/p>\n<p>probe into Binance, one of the world&#8217;s biggest cryptocurrency exchanges.<\/p>\n<\/p>\n<p>The world&#8217;s biggest cryptocurrency last traded at $49,222 , having fallen to as low as $45,700 on Thursday, its lowest level since March 1.<\/p>\n<\/p>\n<p>The second-biggest cryptocurrency ether dropped to $3,656 , off a record high of $4,380.64 hit on Wednesday.<\/p>\n<\/p>\n<p>Moving in the opposite direction, dogecoin, a relatively new coin promoted by Musk, jumped as much as 20% after he said he was involved in work to improve the token&#8217;s transaction efficiency.<\/p>\n<\/p>\n<p>(Reporting by Hideyuki Sano Editing by Shri Navaratnam)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Hideyuki Sano TOKYO, May 14 (Reuters) &#8211; The dollar took a breather on Friday \u2026","protected":false},"author":72907,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_s2mail":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"http:\/\/yorunoteiou.com\/index.php?rest_route=\/wp\/v2\/posts\/271850"}],"collection":[{"href":"http:\/\/yorunoteiou.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/yorunoteiou.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/yorunoteiou.com\/index.php?rest_route=\/wp\/v2\/users\/72907"}],"replies":[{"embeddable":true,"href":"http:\/\/yorunoteiou.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=271850"}],"version-history":[{"count":1,"href":"http:\/\/yorunoteiou.com\/index.php?rest_route=\/wp\/v2\/posts\/271850\/revisions"}],"predecessor-version":[{"id":271851,"href":"http:\/\/yorunoteiou.com\/index.php?rest_route=\/wp\/v2\/posts\/271850\/revisions\/271851"}],"wp:attachment":[{"href":"http:\/\/yorunoteiou.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=271850"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/yorunoteiou.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=271850"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/yorunoteiou.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=271850"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}