Data from Britain’s Office for National Statistics showed on Wednesday that annual consumer price inflation in the country had slowed to its fastest pace in nearly 30 years, to 8.7% in April from 10, 1% in March, but the most worrying figures are the acceleration of underlying inflation – which excludes food prices and volatile energy – unexpectedly to 6.8%, the highest rate since 1992, and last March, it reached 6.2%.
On the other hand, the New Zealand dollar fell 1.8% after the central bank indicated that it would stop raising interest rates.
The dollar is still benefiting from statements earlier this week on the need to continue on the path of raising interest rates for the Fed James Bullard, president of the Federal Reserve Bank in St. Louis, and Neil Kashkari, president of the Federal Reserve Bank in Minneapolis, indicated that the central bank may have to continue raising interest rates if inflation remains high.
The US debt ceiling crisis remains unresolved, after a new round of talks between the White House and Republicans ended on Tuesday to raise the debt ceiling with no sign of progress.
And US Treasury Secretary Janet Yellen has warned that the federal government may not have enough money to pay all of its obligations by June 1, raising the possibility of a default with consequences. harmful.
currency movements
- The dollar index, which measures the currency’s performance against a basket of six major currencies, came in at 103.5, just below Tuesday’s level of 103.65, the highest level since March.
In Europe, the euro rose 0.17%, recording $1.0786, but the pound fell slightly, recording $1.24105, after earlier rising 0.44% to $1.247 after the fall in the inflation rate in Great Britain, but at a rate well below expectations.
The New Zealand Dollar fell to its lowest level in almost three weeks and fell 1.7% in the latest trades, registering $0.6140.
The Australian dollar fell 0.5% to $0.6578.
The yen settled at 138.63 against the dollar, after touching 138.91 overnight, its lowest level in six months.
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