The dollar fell against most major currencies during Friday's trading, paring losses as expectations continued that the Federal Reserve's monetary policy would be...
The University of Michigan data revealed on Friday that the consumer confidence index rose by 1.6% on a monthly basis to 69 points in the preliminary reading for September, compared to 67.9 points in August, which exceeded expectations that it would record 68.3 points.
Data released Thursday showed the producer price index rose 1.7% in August, down from July's 2.1% reading and the lowest reading since February, but the core index - which strips out volatile items - accelerated to 3.3% from 3.2%.
Economic data released on Wednesday also revealed that the US consumer price index rose 2.5% year-on-year in August, the lowest rate since February 2021, down from 2.9% in July, but below analysts' expectations of 2.6%.
In contrast, the annual core inflation rate remained unchanged at 3.2% last month, and reached 0.3% on a monthly basis, up from 0.2% in July and exceeding expectations that it would remain stable.
According to the FedWatch tool, market expectations for a 50 basis point rate cut by the Fed rose to 49% from 28% on Thursday, while markets now see a 51% chance of a 25 basis point rate cut, compared to 72% yesterday.
Global markets will be looking ahead to the Federal Reserve meeting next week on September 17-18, where it is expected to end its tightening policy and begin cutting interest rates from their current range of 5.25% to 5.50%.
In Thursday's trading, the dollar index fell by 0.3% to 101.1 points by 20:32 GMT, recording a high of 101.2 points and a low of 100.8 points.
Canadian Dollar
The Canadian dollar was down 0.1% against the US dollar at 0.7356 by 20:50 GMT.
Australian Dollar
The Australian dollar was down 0.3% against the US dollar at 0.6704 by 20:50 GMT.
