The dollar is heading towards its longest streak of weekly losses since 2020.

He dollar began this Friday with the biggest streak of weekly losses in nearly three years as traders raised expectations that the rate hike cycle would soon end. Federal Reserve after indicating that inflation it might be cold in USA.

This Thursday, Producer price index The US recorded its biggest drop in nearly three years last month, a day after Consumer price index It will also flatten out as expected.

The former fell 0.5% last month and has risen 2.7% in 12 months. This was the smallest year-on-year increase since January 2021, following a 4.9% rise in February.

In turn, inflation in the consumer price index amounted to 5% year on year in March compared to 6% in February. Inflation underlying, which excludes volatility in energy and food prices, rose 5.6% after 5.5% in the previous month.

Wherein dollar index, which measures the value of the US currency against a basket of six other currencies, was trading at its lowest in almost a year, at 100.78 units. This is approaching a weekly decline of more than 1%, the steepest since January. This will be the fifth weekly drop in a row, the longest since July 2020.

The decline in US producer prices also caused mexican peso and bag rose on Thursday as expectations rose that the Federal Reserve would be nearing the end of its rate hike cycle.

(According to Reuters)

Source: Aristegui Noticias

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