ALBAWABA – The US dollar, the currency of the United States (US), lost further footing in Asia and Europe on Thursday, Reuters reported, after slowing US inflation data came out Wednesday and took traders by surprise.
Slower US inflation data indicate that the Federal Reserve (Fed), the US central bank, may not need to hike interest rates in their upcoming meeting on July 25.
The US dollar has been steadily slipping for about six weeks, after falling more than 1 percent against the Euro on Wednesday, in what was the dollar’s worst session in five months.
The New Zealand dollar rose 0.5 percent to a two-month high of $0.6332 and the Aussie was up 0.4 percent to a three-week peak at $0.6813, according to Reuters.
Moves in other currencies were smaller but still delivered new milestones as traders predict the US dollar has further more to drop.
The Swiss franc hit its strongest since 2015 at 0.8655 to the dollar and sterling a 15-month top of $1.3019.
The Chinese yuan steadied near a one-month high at 7.1675 per dollar, held back by weak trade data.
Emerging market currencies also rallied across Asia, led by Malaysia's ringgit, which jumped 1 percent and through to the strong side of 4.6 per dollar, while Thailand's baht held small gains.
In Scandinavia, where inflation is looking sticky and central bankers are projecting further rate hikes, currencies tacked extra gains to Thursday's surges for the Swedish and Norwegian crowns to eye weekly gains of 5 percent.
Two-year Treasuries, which track rate expectations, extended an overnight rally driving yields down 4 basis points to 4.71 percent.
