US Dollar Weakens 0.10 Percent on Weaker Inflation

JAKARTA - The US dollar weakened slightly against a basket of other major currencies at the end of trading Friday (Saturday, September 30 morning Western Indonesian Time or WIB). The dollar index, which measures the greenback against six major currencies, slipped 0.10 percent to 106.1156 in late trading.

This decline occurred after weaker-than-expected inflation data and an encouraging consumer sentiment report. Inflation in the United States, as measured by changes in the personal consumption expenditures (PCE) price index, rose to 3.5 percent on an annual basis in August from 3.4 percent in July, the Bureau of Economic Analysis reported on Friday, September 29.

Annual core PCE, the Federal Reserve's preferred measure of inflation, rose 3.9 percent in August, a slightly slower pace than July's 4.3 percent rise.

The University of Michigan also released the final reading of the Michigan Consumer Sentiment report for September on Friday, September 29.

The report indicated that the Consumer Sentiment Index fell from 69.5 in August to 68.1 in September, compared to analysts' consensus of 67.7. The US dollar rose back above the 106.00 level after the report.

Meanwhile, in the euro zone, consumer prices rose at an annual rate of 4.3 percent this month, down from 5.2 percent in August, the European Commission statistics agency reported on Friday, September 29.

Quoted from ANTARA, the British economy in the three months to the end of June 2023 was 1.8 percent bigger than the last quarter of 2019, the last full quarter before the start of the COVID-19 pandemic, according to the Office for National Statistics on Friday, September 29.

In late New York trading, the euro rose to 1.0578 US dollars from 1.0553 US dollars in the previous session, and the British pound rose to 1.2206 US dollars from 1.2196 US dollars.

The US dollar bought 149.4190 Japanese yen, higher than 149.2380 Japanese yen in the previous session. The U.S. dollar fell to 0.9154 Swiss franc from 0.9162 Swiss franc, and increased to 1.3554 Canadian dollars from 1.3500 Canadian dollars. The US dollar fell to 10.8972 Swedish krona from 10.9344 Swedish krona.