Dollar falls, April business activity index misses expectations

New York (Armfalcon.com) – The US dollar fell against a basket of other major currencies in late trading Monday (Tuesday morning WIB), following the release of a weak Dallas Fed manufacturing index report and a Chicago Fed activity index survey of economic conditions, with investors expecting a 2019 rate cut. this by the Federal Reserve after May hikes.

The dollar index, which measures greenbacks against six other major currencies, it was down 0.46 percent to 101.3522 in late trading.

In late New York trading, the euro rose to US$1.1045 from US$1.0976 of the previous session, and the British pound rose to US$1.2482 from US$1.2430 in the previous session.

The US dollar bought 134.2900 Japanese yen, higher than 134.2030 Japanese yen in the previous session. The US dollar decreased to 0.8880 Swiss franc from 0.8931 Swiss franc, and it was down to 1.3539 Canadian dollars from 1.3548 Canadian dollars. The US dollar fell to 10.2489 Swedish krona from 10.3126 Swedish krona.

The general business activity index in Texas weakened to -23.4 in April, down from -15.7 in March, according to a manufacturing outlook survey published by the Dallas Federal Reserve on Monday (24/4/2023). Economists had expectations of -11.5. The production index was below the survey’s mark of 0.9 in April, down from 2.5 in March.

The Chicago Federal Reserve reported on Monday (4/24/2023) that the Chicago Fed’s national activity index stood at 0.19 in April, unchanged from its previous reading in March.

The Chicago Fed’s Survey of Economic Conditions (CFSEC) showed that its activity index fell to -37 in April from -8 in March, “suggesting that economic growth is well below trend.”

The CFSEC manufacturing activity index fell to -55 in April, falling from -7 in March, and the non-manufacturing activity index fell to -24 in April from -9 in March.

greenback will fall further against major currencies such as the euro over the next six to 12 months, according to a research note by Swiss banking giant UBS on Monday (24/4/2023).

“The dollar is struggling to build on last week’s gains as forthcoming data could show slower US growth and lower inflation, results that should solidify the case for a mid-year rate hike,” said Joe Manimbo, senior market analyst at Convera in Washington.

Fed policy makers are widely expected to raise interest rates by another 25 basis points at their meeting next week, but they are expected to pause in June. Interest rate futures markets are also pricing in a rate cut of around 50 basis points by the end of the year.

Also read: Oil strengthens on the back of demand growth prospects in China
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Also read: UK stocks stop 2-day rally, FTSE 100 index erodes 0.02 percent

source: www.antaranews.com

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