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© Reuters. FILE PHOTO: A package of United States five dollar bills is inspected at the Bureau of Engraving and Printing in Washington.
Por John McCrank
NEW YORK, Nov 15 (Reuters) – The dollar, a haven for investors, hit a 16-month high against its major peers on Monday, fueled by concerns about global growth and inflation, as well as monetary policy expectations. , while investors waited for data on consumption in the United States.
* The greenback received a boost on Wednesday when data showed that US consumer prices grew last month at the fastest annual rate since 1990, calling into question the Federal Reserve’s view that price pressures are transitory, encouraging bets that interest rates will rise earlier than expected.
“I feel like I’m trading in the 1990s, when everyone was paying a lot more attention to what the Fed was going to do,” said Joseph Trevisani, senior analyst at FXStreet.com. “It’s been a while since we’ve had a real change in comparative sovereign rates and this seems to be where we’re headed.”
* El, which measures the currency against six pairs, hit 95.462 on Monday, its highest level since July 2020, and was later up 0.274% to 95.394.
* Demand for dollars softened on Friday, when a report showed consumer confidence fell to its lowest level in a decade, due in part to rising inflation. But it reaffirmed again on Monday after monetary policy makers in Europe and the UK expressed concerns about growth and prices.
* Investors will check US retail sales data on Tuesday for clues as to where the dollar will go. The data is expected to show that retail sales rose 1.1% last month, according to a Reuters poll.
* Investors will also be on the lookout for any comments at a virtual summit between President Joe Biden and Chinese leader Xi Jinping on Monday.
* The gains in the dollar index, heavily weighted by the euro, have also been helped by a fall in the single currency, and the president of the European Central Bank, Christine Lagarde, continued to dismiss the market’s bets for a more restrictive monetary policy.
* Supply chain bottlenecks and rising energy costs are slowing growth in the euro zone and will keep inflation high for longer than previously thought, Lagarde told the European Parliament’s economic affairs committee on Monday. Inflation in the euro zone will ease next year, he said.
* The euro was down 0.49% at $ 1.1386, after hitting a 16-month low.
(Reporting by John McCrank in New York and Joice Alves in London, Edited in Spanish by Manuel Farías and Rodrigo Charme)
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