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Currency: The dollar lost ground on Wednesday

12/08/2021
Categories: Economy/Forex

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On the foreign exchange market, the dollar remains in retreat, weighed down by US inflation which is slowing down. This trend somewhat removes the specter of an imminent tightening of the Fed's monetary policy.

The dollar lost ground against the euro on Wednesday after the publication of inflation figures for July in the United States, which showed a slowdown in the rise in prices. Around 7:00 p.m. GMT, the greenback lost 0.16% against the European currency, at 1.1740 dollars. After eight consecutive sessions without a decline against the single European currency, it had approached its last peak at 1.1704 dollars earlier in the day, reached on March 31, before switching to the publication of the CPI index by the Department of Labor. at 12:30 p.m. GMT. This indicates that inflation slowed in the United States in July over one month, and is stable over one year, a reassuring sign in the face of fears of a lasting rise in consumer prices. Over one year, inflation is stable, at 5.4% as in June. But the greenback still maintained a gain of more than 1% against the euro since the beginning of the month, helped by its status as a safe haven as the spread of the Delta variant remains a threat to the recovery of global growth.

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