© Reuters. Dollar holds steady against currency basket after U.S. PPI data
Investing.com. The dollar remained stable in the basket of other major currencies on Wednesday, after evidence suggests that, while prices for American producers slightly increased in August, inflationary pressures remained weak.
The US Dollar Index, which measures the quotient rate of trading with the six major currencies, was 91.92 to 09:05 am (13:05 GMT), with 91.8 points forecast.
The producer price index increased by 0.2% in August from a month ago, the Department of Labor reports. Most of the increase is due to higher gasoline prices.
The main prices of producers that produce food and energy components grew by only 0.1%.
Economists expect a 0.3% increase in total producer prices and a 0.2% rise in prices for major ones.
The report noted that inflation remains slow, underlining the uncertainty over the timing of the next increase in the Federal Reserve’s rate.
The dollar was stable against the yen, where the last position was USD / JPY at 110.15, after picking up to a nominal position at 110.29, the highest since September 1.
The appreciation of the dollar declined by 10 months to 107.30 against the Japanese currency on Friday before recovering, as the tensions over North Korea declined, and concerns over the economic impact of the Irma hurricane weakened.
The euro was slightly higher relative to the dollar, and the euro / dollar was the last on 1.1972.
Last week, the euro rose to a two-and-a-half-year high against the dollar, after President of the European Central Bank Mario Draghi said that this autumn could begin to reduce its large-scale stimulus program.
But he also said that a strong euro weighs inflation, putting pressure on the ECB at a time when it begins to decide how to continue to shrink.
The sterling remained slightly weaker, while GBP / USD fell by 0.11% to 1.3268, despite the annual high of 1.3329, which was before.
The pound left behind after the last employment report in the UK, which showed that wage growth remains sluggish, which raises fears before lowering the standard of living.
In the face of rising wage inflation, the decline in living costs deteriorates, which is likely to hold back the Bank of England to raise interest rates. BoE is scheduled to hold its next meeting on Thursday.