U.S. dollar tanks as post-Fed momentum continues


NEW YORK, Dec. 14 (Xinhua) -- The U.S. dollar continued to suffer substantial losses on Thursday, after investors rotated out of momentum growth stocks following the U.S. Federal Reserve's dovish pivot.

The dollar index, which measures the greenback against six major peers, was down 0.88 percent to 101.9642 in late trading, hitting its weakest position since August.

Investors and traders continued to digest the Federal Reserve's interest-rate projections and policy update, released on Wednesday, as the U.S. Treasury yields slid to fresh multi-month lows Thursday, with the 10-year rate falling to as low as 3.91 percent.

U.S. retail sales unexpectedly rose 0.3 percent in November as the holiday shopping season got off to a brisk start, further alleviating fears of a recession, the U.S. Commerce Department reported on Thursday.

"The rebound in retail sales in November provides further illustration that the continued rapid decline in inflation is not coming at the cost of significantly weaker economic growth," said Andrew Hunter, deputy chief U.S. economist at Capital Economics.

The CME FedWatch Tool projections suggest that markets foresee rate cuts as early as March 2024.

Both the European Central Bank and Bank of England decided to keep their main interest rates unchanged on Thursday, though each also gave signals that cuts are not imminent. In late New York trading, the euro increased to 1.0991 dollars from 1.0886 dollars in the previous session, and the British pound was up to 1.2755 dollars from 1.2621 dollars in the previous session.

The U.S. dollar bought 141.9480 Japanese yen, lower than 143.1550 Japanese yen of the previous session. The U.S. dollar was down to 0.8662 Swiss francs from 0.8694 Swiss francs, and it fell to 1.3409 Canadian dollars from 1.3499 Canadian dollars. The U.S. dollar decreased to 10.2349 Swedish kronor from 10.2928 Swedish kronor.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In World

Indonesian tsunami survivor holds on to hope for missing son after 20 years
South Korean opposition threatens to impeach Han over martial law counsel
Jeff Bezos says most people should take more risks. Here’s the science that proves he’s right
Bluesky finds with growth comes growing pains – and bots
How tech created a ‘recipe for loneliness’
New Zealand rejects Cook Islands passport plan
How data shared in the cloud is aiding snow removal
Brazil bridge collapses, spilling sulfuric acid into river
Do you have a friend in AI?
Slovak PM meets Putin to discuss transit of Russian gas

Others Also Read