Dollar Down Ahead of U.S. Inflation Data, PBOC Raises FX Reserve Requirements By


© Reuters.

By Gina Lee – The dollar fell on Friday morning in Asia ahead of U.S. inflation data, which could provide indications as to when the Federal Reserve will raise interest rates. The Chinese yuan also recorded its after authorities moved to stop its recent build-up.

The one that tracks the greenback against a basket of other currencies fell 0.07% to 96.183 before 22:14 ET (3:14 AM GMT).

The pair was down 0.15% at 6.3678 and the pair was up 0.06% at 113.50.

The pair was up 0.07% at 0.7154 and the pair was up 0.10% at 0.6800.

The pair rose 0.06% to 1.3226.

The U.S. currency is moving toward its seventh consecutive weekly rise before the U.S. data, including the and later in the day.

“Inflation will accelerate,” said RBC Capital Markets U.S. chief economist Tom Porcelli, who predicts the annual rate will rise to push nearly 7% in early 2022.

“As a result, we think that combination means that a rise in March 2022 is very possible … the market estimates about 40% chance of that, but we now think it’s a little higher. It’s probably more close to a coin now, “he added.

Investors are also waiting for policy decisions from the,, and next week.

“Judging by the way the dollar is trading … I would argue that traders are positioning themselves for a higher CPI print that cements the view that the Fed will increase the rate of decline of its quantitative easing program,” said the research chief. Pepperstone Chris Weston. Reuters.

“While form suggests we get a hit, we obviously can’t rule out a bad number, and of course an online print. I think if we get 6.4% or less, then AUD / USD should fly.”

Meanwhile, the People’s Bank of China raised FX reserve requirements for the second time since June 2021, dipping the yuan by about half a percent in foreign trade on Thursday.

The move will also encourage the sale of yuan and cool a rally that has raised the Chinese currency by more than 2% against the dollar since late July 2021. “It also sent a clear signal of PBOC’s discomfort over the currency’s rapid and sustained appreciation. . ”Goldman Sachs analysts said in a note.

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