Ended Up In Tipis, US Dollars Recorded An 8-Mingle Increase In A Row

US dollar (Photo: Doc. Antara)

JAKARTA - The US dollar exchange rate moved almost flat against a basket of other currencies at the end of trading Friday, September 8. Even so, this US currency recorded an increase for 8 consecutive weeks amid the robustness of the US consumer and labor market.

Citing Antara, the dollar index, which measures the greenback against six other major currencies, slightly rose 0.03 percent to 105.0866 at the end of trading, posted an eight-week increase in a row, which was the longest increase since 2014.

"This week the market is a bit more nervous than usual in a number of ways and it strengthens the dollar," said Amo Sayota, director of foreign exchange at consulting firm Klarity FX in San Francisco.

He cited the continued escalation of disputes between the US and China over iPhone restrictions, which have put Apple in the spotlight.

There is also a narrative, he said, that the Federal Reserve will maintain higher interest rates longer because the fight against inflation is still ongoing.

Analysts and investors believe that positive economic data from the United States in recent weeks, along with economic resilience, has helped increase the value of the dollar.

"We remain positive towards the US dollar in the short term despite taking it too high," the Bank of America analyst said in a report. "This is in line with weaker euro zone data and, broaderly speaking, our view that the market expects the Fed's rate cuts by 2024 to be excessive."

In the euro zone on Friday (8/9/2023), Germany's consumer price index (IHK), Europe's largest economy, remained unchanged in August for the third month in a row.

On an annual basis, the German IHK is confirmed to be at 6.1 percent year-on-year, down slightly from 6.2 percent, while the core IHK remains unchanged at 5.5 percent year-on-year. Food and energy prices rose but there was little good news because service inflation fell to 5.1 percent from 5.2 percent in July.

At the end of New York trading, the euro rose to $1.0698 from $1.0695 in the previous session, and the English pound fell to $1.2453 from $1.2470.

The US dollar was purchased at 147.8240 Japanese yen, higher than 147.1700 Japanese yen in the previous session. The US dollar increased to 0.8933 Swiss francs from 0.8928 Swiss francs, and fell to 1.3643 Canadian dollars from 1.368 Canadian dollars. The US dollar fell to 11.1251 Swedish krona from 11.1429 Swedish krona.