The US Dollar has hit a new seven week high against the Pound and has climbed against the Euro and Japanese Yen after the UK’s weaker than expected inflation data kick started trading in the foreign exchange markets.
The Dollar hit a seven week high after data released by the Office for National Statistics showed that inflation in the UK slowed to an annual rate of 2.4% in April, down from the 2.8% recorded in March. The figure is the slowest annual rate recorded since 2012 and beat economist expectations of 2.6%.
After the data was released the currency market sprang to life after it triggered a broad wave of Dollar buying ahead of Wednesdays highly anticipated speech by the US Federal Reserve Chairman Ben Bernanke. The chairman’s speech is expected to defuse speculation that the Central Bank will be slowing its bond buying programme. If however he backs an easing in the measures then the Dollar is certain to soar in Wednesday’s session.
The UK inflation data saw the ‘Greenback’ rise against the Euro and Yen and also sent the currency upwards against the commodity based currencies of Australia, Canada and New Zealand. Against the South African Rand the Dollar soared to fresh four-year high on the back of its own upwards momentum and concerns over possible labour disruptions to the South African economy.
All eyes will be on Bernanke’s speech tomorrow. Whatever he says the Dollar is set to make substantial moves.
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6609
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7776
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0248
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 102.7709
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0307
The Pound Sterling/ US Dollar Exchange Rate is currently in the region of: 1.5129
The Euro/US Dollar Exchange Rate is currently in the region of: 1.2859
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9757
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9701
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8125
(Correct as of 15:30pm GMT)
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