Business

Dollar mixed following weak US inflation data

NEW YORK: The dollar Friday fell against the euro, but gained on the Japanese yen following weak US inflation data.

US producer prices fell 0.2 percent in November, according to data from the Labor Department.

While the main reason for the 0.2 percent fall last month in the producer price index was the steep drop in energy prices, wholesale goods excluding energy also fell for the second straight month, by 0.1 percent.

Joe Manimbo, senior market analyst at Western Union Business Solutions, said the inflation data are “an obstacle in the way of a potential Federal Reserve rate hike next year.”

“Although jobs and consumer spending have been bright spots for the US economy, the Fed would want to gain greater confidence in inflation moving towards its 2 percent goal before boosting interest rates.”

The Federal Reserve holds its last policy meeting of the year on Tuesday and Wednesday, with analysts guessing they might signal to markets the possibility that a rate hike could come earlier than the mid-2015 date currently expected. – AFP

2300 GMT       Friday     Thursday (2200 GMT)

EUR/USD       1.2464     1.2410

EUR/JPY       148.05     147.24

EUR/CHF       1.2009     1.2011

EUR/GBP       0.7930    0.7887

USD/JPY       118.79     118.65

USD/CHF       0.9638     0.9678

GBP/USD       1.5717     1.5732

 

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