14 Aug 2022

USD trades lower as inflation concerns ease

USD traded lower last week as U.S. inflation was not as hot as anticipated in July. INR ended the week lower against USD. India’s retail inflation, which is measured by the Consumer Price Index (CPI), eased to a 5-month low of 6.71% in the month of July, down from 7.01% in June.

author dp
Team INRBonds
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  • USD traded lower last week as U.S. inflation was not as hot as anticipated in July.
  • US inflation data, the headline CPI inflation eased in July to 8.5% from 9.1% in June.
  • Fed Governor Michelle Bowman said on Saturday that the U.S. central bank should consider more 75 bps hikes at coming meetings to bring inflation back to 2%
  • U.S. weekly jobless claims rose to 263,000  signalling that conditions in the labour market are tightening.
  • INR ended the week lower against USD
  • India’s retail inflation, which is measured by the Consumer Price Index (CPI), eased to a 5-month low 6.71% in the month of July, down from 7.01% in June.
  • Import growth figures from China increased less than expected fuelling worries over stagnant demand in the world’s second-largest economy.
  • China’s export beat forecasts in July as they rose by 18% compared to a 17.9% increase in June. Imports rose by 2.3% from a year earlier missing  forecasts for a 3.7% increase.

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