[1/2]This illustrated photo from June 22, 2017 shows US dollar and euro banknotes.Reuters/Thomas White/Illustration/File Photo Obtaining license rights
NEW YORK, Sept 14 (Reuters) – The dollar index hit a six-month high on Thursday after mostly better-than-expected economic data and the European Central Bank signaled an end to its rate hike cycle. Recorded.
U.S. retail sales rose 0.6% in August due to higher gasoline prices, exceeding the expected 0.2% increase, while the number of new weekly unemployment insurance claims increased to 220,000, compared to the expected 220,000. The number of cases fell below 5,000.
Rising gasoline prices also weighed on the latest inflation figures, with the producer price index for final demand rising 0.7% last month, the biggest rise in more than a year and beating expectations of 0.4%.
The dollar index was last up 0.5% at 105.18, just shy of the 105.31 level hit earlier in the day, its highest level since March 10.
The euro fell against the dollar after the ECB raised its key policy interest rate to a record 4% on Thursday, a last resort in the fight against inflation for more than a year as the eurozone economy continues to falter. It was suggested that there is a high possibility that The euro fell 0.64% to $1.0655, after falling to $1.0651, its lowest level since May 31.
“(ECB President Christine) Lagarde has hinted that this could be the last rate hike, because she said if you keep rates the same for a certain period of time, you can get away with this,” said Eric Breger, director of foreign exchange and precious metals. That’s because there are.” Risk Management in Toronto Silver Gold Bull.
“And I think all the metrics that came out this morning in the U.S. were better than expected, including unemployment claims, retail sales, headline PPI, etc. So it’s kind of a double boost for the dollar here. ”
Despite the U.S. economic data, views on the Fed remain largely unchanged, with expectations rising that the central bank will keep interest rates on hold at 97% at the end of its Sept. 19-20 policy meeting, CME said. fedwatch tool, up slightly from 96% on Wednesday. 32.2% expected a 25 basis point rate hike at the November meeting, down from 41% the day before.
The pound traded 0.58% lower at $1.2418 on the day after falling to a three-month low of $1.2411, while the dollar was down 0.11% against the yen at $147.28.
China’s offshore yuan fell on Thursday after the People’s Bank of China announced it would cut banks’ reserve requirements by 25 basis points.
The dollar rose to 7.2969 yuan against the yuan in offshore trading, and ended the day 0.29% higher at 7.2936 yuan.
Reporting by Chuck Mikolajczak.Editing: David Evans
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