U.S. dollar slightly weakens on soft inflation data and positive consumer sentiment


30th September 2023 – (New York) In late trading on Friday, the U.S. dollar experienced a marginal decline following the release of lower-than-expected inflation figures and an encouraging consumer sentiment report.

The dollar index, which gauges the performance of the greenback against six major currencies, was down 0.10 per cent at 106.1156.

According to the Bureau of Economic Analysis, inflation in the United States, as measured by the change in the personal consumption expenditures (PCE) price index, increased by 3.5 per cent on a yearly basis in August, slightly higher than July’s figure of 3.4 per cent.

The Federal Reserve’s preferred inflation gauge, the annual core PCE, rose by 3.9 per cent in August, indicating a slightly slower pace compared to the 4.3 per cent rise in July.

Meanwhile, the final reading of the Michigan Consumer Sentiment report for September, released by the University of Michigan, showed a decline in the Consumer Sentiment Index from 69.5 in August to 68.1 in September, surpassing the analyst consensus of 67.7. Following the report, the U.S. dollar regained strength, pushing it above the 106.00 level.

In the eurozone, consumer prices rose by an annual rate of 4.3 per cent this month, a decrease from August’s 5.2 per cent, as reported by the European Commission’s statistical arm.

The Office for National Statistics revealed that Britain’s economy in the three months leading up to the end of June 2023 was 1.8 per cent larger than in the final quarter of 2019, which was the last full quarter before the onset of the COVID-19 pandemic.

During late New York trading, the euro strengthened to 1.0578 U.S. dollars from 1.0553 dollars in the previous session, while the British pound rose to 1.2206 U.S. dollars from 1.2196 dollars.

The US dollar bought 149.4190 Japanese yen, a slight increase compared to the previous session’s 149.2380 Japanese yen. The U.S. dollar weakened against the Swiss franc, falling to 0.9154 Swiss francs from 0.9162 Swiss francs. However, it strengthened against the Canadian dollar, rising to 1.3554 Canadian dollars from 1.3500 Canadian dollars. The US dollar declined against the Swedish krona, reaching 10.8972 Swedish krona from 10.9344 Swedish krona.