The US dollar came under more pressure and fell today, Thursday, as dealers unexpectedly saw slowing inflation in the United States as an indication that the interest rate hike cycle is about to end by the end of this month.
US data released on Wednesday showed that inflation slowed much faster than expected last month. This led to the biggest selling of the dollar in one day in five months and the US currency to its lowest level in more than a year against the euro and the pound sterling, and to its lowest level in more than eight years against the Swiss franc.
The euro is heading to record gains for the sixth day, and rose in the latest trading by 0.3% to 1.155 dollars, after reaching its highest level earlier at 1.11580 dollars.
The pound sterling rose 0.4% during the day, to $1.30345, on its way to record gains for the sixth day, after it exceeded $1.30 yesterday for the first time since April of last year.
The yen rose 0.12% to 138.325 against the dollar, partly due to lower US Treasury yields. The yen has risen 4% in the past five days.
The Swiss franc reached its highest level against the dollar since the Swiss National Bank ended the local currency’s peg to its US counterpart in early 2015, and the dollar fell 0.5% on the day to 0.863 per franc.
