AGL 40.00 Decreased By ▼ -0.01 (-0.02%)
AIRLINK 192.60 Increased By ▲ 4.62 (2.46%)
BOP 10.20 Increased By ▲ 0.08 (0.79%)
CNERGY 7.18 Increased By ▲ 0.07 (0.98%)
DCL 10.25 Increased By ▲ 0.10 (0.99%)
DFML 41.89 Increased By ▲ 0.32 (0.77%)
DGKC 107.47 Decreased By ▼ -0.44 (-0.41%)
FCCL 38.00 Decreased By ▼ -1.00 (-2.56%)
FFBL 88.51 Increased By ▲ 6.49 (7.91%)
FFL 14.92 Increased By ▲ 0.02 (0.13%)
HUBC 121.05 Increased By ▲ 1.59 (1.33%)
HUMNL 14.40 Increased By ▲ 0.35 (2.49%)
KEL 6.37 Decreased By ▼ -0.03 (-0.47%)
KOSM 8.21 Increased By ▲ 0.14 (1.73%)
MLCF 49.25 Decreased By ▼ -0.22 (-0.44%)
NBP 73.35 Decreased By ▼ -0.31 (-0.42%)
OGDC 207.16 Increased By ▲ 2.31 (1.13%)
PAEL 32.96 Decreased By ▼ -0.60 (-1.79%)
PIBTL 8.93 Increased By ▲ 0.86 (10.66%)
PPL 193.25 Increased By ▲ 7.84 (4.23%)
PRL 33.60 Decreased By ▼ -0.01 (-0.03%)
PTC 27.10 Decreased By ▼ -0.29 (-1.06%)
SEARL 119.50 Decreased By ▼ -0.32 (-0.27%)
TELE 9.74 Increased By ▲ 0.05 (0.52%)
TOMCL 35.45 Increased By ▲ 0.15 (0.42%)
TPLP 12.60 Increased By ▲ 0.35 (2.86%)
TREET 21.40 Increased By ▲ 1.14 (5.63%)
TRG 60.90 Increased By ▲ 0.12 (0.2%)
UNITY 37.15 Decreased By ▼ -0.84 (-2.21%)
WTL 1.72 Increased By ▲ 0.07 (4.24%)
BR100 12,008 Increased By 235.7 (2%)
BR30 37,140 Increased By 555.7 (1.52%)
KSE100 112,724 Increased By 1913.6 (1.73%)
KSE30 35,145 Increased By 715.6 (2.08%)

NEW YORK: The dollar was little changed on Wednesday after US price data came in line with forecasts, reinforcing expectations the US Federal Reserve will cut interest rates next week.

The dollar was also boosted by a Reuters report China was considering allowing a weaker currency next year, which sent the yuan and other Asian currencies lower.

The consumer price index rose 0.3% last month, the largest gain since April after advancing 0.2% for four straight months, data showed on Wednesday. Economists polled by Reuters had forecast the index would rise 0.3%.

Following the report, the likelihood of a quarter-point rate cut by the Fed on Dec. 18 rose to 96.4%, according to CME’s FedWatch tool.

“The market is as confident as possible, practically, that the Fed is still going to cut rates next week,” said Marc Chandler, chief market strategist at Bannockburn Forex in New York. “Very rarely does the Federal Reserve go against the market when such strong odds are priced in.”

The US dollar index was last up 0.141% at 106.5.

Analysts said the dollar was also being affected by Reuters’ report that China’s top leaders and policymakers are considering allowing the yuan to weaken in 2025 as they brace for higher trade tariffs under a second Donald Trump presidency.

The dollar jumped against the yuan, but gave back some of its earlier gains and was last up 0.18% against the offshore unit at 7.2747.

The contemplated move reflects China’s recognition that it needs bigger economic stimulus to combat Trump’s threat of bigger tariffs, people with knowledge of the matter said, according to the report.

China is expected to hold its annual Central Economic Work Conference this week, after Monday’s Politburo meeting vowed to switch to an “appropriately loose” monetary policy to spur economic growth.

“If a currency depreciation served as a tactic to counter tariff shock, the likely escalating trade war could reinforce (US dollar) exceptionalism and weigh on regional currencies,” said Ken Cheung, FX strategist at Mizuho.

China-exposed currencies fell, with the Aussie last down 0.25% to $0.6362 and the kiwi 0.18% lower at $0.579, after both touched on year lows after the report. Korea’s under-fire won also dipped.

Japan’s yen was in focus after Bloomberg news reported the BOJ sees “little cost” to waiting for the next rate hike.

The dollar was last 0.19% higher at 152.25 yen.

“The data is leaning towards a hike,” said Bart Wakabayashi, co-branch manager at State Street in Tokyo. “Put it this way: if they raise, it’s a very defendable position.” In a busy week for monetary policy, the Bank of Canada meets later Wednesday and the European Central Bank and Swiss National Bank meet on Thursday.

Expectations Canada’s central bank will cut rates by a half point helped to pin the loonie near a 4-1/2-year low against the greenback. One US dollar last bought C$1.4174.

The euro was down 0.13% at $1.0514, while the Swiss franc was down 0.07% against the dollar at 0.8822.

Comments

200 characters