16 Jan 2023

USD down as inflation eases

USD edged lower last week after data showed U.S. inflation was easing, prompting bets that the Federal Reserve will be less aggressive with rate hikes going forward. India’s CPI inflation falls to 5.72% in December from the 5.88% level seen in November.

author dp
Team INRBonds
Share via:LinkedIn LogoTwitter logo
  • USD edged lower  last week after data showed U.S. inflation was easing, prompting bets that the Federal Reserve will be less aggressive with rate hikes going forward.
  • U.S. data showed the consumer price index (CPI) was at 6,5% in December from 7.1% in November.
  • On a monthly basis, the US CPI declined by 0.1% marking the first decline in the data since May 2020, when the economy was reeling from the first wave of COVID-19 infections.
  • Fed policymakers expressed relief that price pressures were easing, paving the way for a possible slowdown in interest rate hikes, but they signaled the central bank's target rate was still likely to rise above 5%.
  • The yen was up last week against USD after a market report suggested that BOJ officials would review the side effects of the central bank's yield curve control, or YCC, the policy at their meeting next week.
  • India’s CPI inflation falls to 5.72% in December from the 5.88% level seen in November.
  • December marks the second straight month when the domestic CPI figure remained under the Reserve Bank of India’s mandated tolerance band of 2-6%.

We would love to hear back from you. Please Click here to share your valuable feedback