USD at 15-month low against euro

Cooling US inflation has led investors to expect the Fed to stop raising interest rates, thereby weakening the USD against a series of major currencies.

At the beginning of the trading session on July 13, the Dollar Index - measuring the strength of the greenback against a basket of major currencies in the world - fell to 100.47 points - the lowest since April 2022. The euro price this morning reached a 15-month peak against the USD, with one euro being exchanged for 1.11 USD.

The yen also rose 0.3 percent against the dollar to 138 yen per dollar, its strongest level in five months. The yen has gained 4.8 percent in the past five sessions. Markets are now focused on whether the Bank of Japan (BOJ) will soon change its yield control policy.

EUR/USD exchange rate from the beginning of 2022. Chart: Reuters

The New Zealand and Australian dollars also strengthened. Although the gains were small, they also showed that investor confidence in the dollar was waning. The international yuan hit a one-month high against the dollar yesterday, at 7.1 CNY to the dollar.

The USD weakened on the evening of July 12 after data showed that US inflation in June continued to cool down. According to the US Bureau of Labor Statistics, the country's Consumer Price Index (CPI) in June increased by 3% compared to the same period last year. This rate has slowed for the 12th consecutive month.

Last June, US inflation hit 9.1% - the highest since 1981. Core inflation (excluding volatile fuel and food prices) rose 4.8% - the slowest since late 2021.

"We and the market are increasingly skeptical that the US Federal Reserve (Fed) will continue to raise interest rates after its meeting later this month. The weaker USD shows that the market is increasingly comfortable selling USD," concluded Steve Englander - Director of currency research at Standard Chartered.

Ha Thu (according to Reuters)

Source link: https://vnexpress.net/gia-usd-thap-nhat-15-thang-so-voi-euro-4628745.html