The US dollar further declined in overnight trading versus its major counterpart currencies on sluggish US economic data. The greenback slumped further after the release of US Federal Reserve’s minutes of meetings in which Fed’s officials were confident despite the country’s escalating inflation and unemployment.
The dollar index DXY which measures the greenback’s performances against its six major counterpart currencies declined to 78.17 as compared to 78.24 on Wednesday’s North American trading session.
Experts believe that the US dollar can further fall as US consumer price inflation data is awaited on Thursday. Analysts are expecting increase of 0.3 percent in consumer price inflation and surge of 0.1 percent in core consumer price inflation which could result in further depreciation of the US dollar.
Currency strategist from Credit Agricole commented, “The fact that the core rate of consumer price inflation is expected to remain well below the Fed’s preferred level could undermine the dollar and add a further barrier to the U.S. dollar’s recovery so far in February.”
The Euro traded at 1.3570 against the US dollar in overnight trading as compared to 1.3566 on late Wednesday. The British Pound advanced versus the greenback as the pair GBP/USD surged to 1.6099 in overnight market as compared to 1.6094 on Wednesday’s trading session.
The dollar remained under pressure in against the Japanese Yen too as the pair USD/YEN declined to 83.57 in Asian trading session as compared to 83.62 on Wednesday last hours trading in North American session.
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Daily forex trading news written by Rehan from DailyForexTrade.com
