The US Dollar is little moved against Sterling but softened slightly against the Euro and other peers as investors await Wednesday’s two day long Congressional testimony by Fed Chairman Ben Bernanke. The market largely ignored Tuesday’s latest glut of economic data.
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6633
According to the Washington based Labor Department the latest Consumer Price Index increased by 0.5% following on from the 0.1% increase recorded in May. The figure beat economist expectations of a rise to 0.3%.
Most of the gain was a result of the biggest increase in fuel prices in four months. Food and fuel rose by 0.2%, matching the gains seen in May.
With the rise in inflation comes the increased prospect that the Federal Reserve will choose to begin tapering of its massive quantitative easing programme. Inflation readings closer to the Fed’s target will give the Central Bank the flexibility to move forward later this year with reductions.
Whilst the price of goods is rising in the world’s largest economy wages are not. Higher prices are taking a chunk out of American pay packets which could lead to a slowdown in other key areas such as retail sales which are already showing signs of a slowdown.
The Pound remains softer against the US currency after official UK data showed that consumer price inflation in the country rose below expectations.
Current US Dollar (USD) Exchange Rates
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The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6633 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7631 <
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.086 >
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.5699 <
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0430>
The Pound Sterling/ US Dollar Exchange Rate is currently in the region of: 1.5074 <
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3104 >
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9587 <
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.7860 >
(Correct as of 14:45 pm GMT)
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