US Dollar Drops 0.06 Percent Amid Consumer Sentiment

US Dollar (Photo: ANTARA)

JAKARTA - The US dollar weakened against another major coin at the end of trading Friday, September 15 (Saturday morning WIB). The dollar index, which measures the greenback against six other major currencies, fell 0.06 percent to 105.3192 at the end of trading.

After the data showed a decline in consumer sentiment, the greenback is still preparing to strengthen for nine consecutive weeks. Michigan University released an early reading of the consumer sentiment index on Friday, September 15, which fell to 67.7 this month from 69.5 in August below economists' forecasts.

One year inflation expectations in the survey fell to 3.1 percent, the lowest since March 2021. Meanwhile, inflation's five-year forecast fell to its lowest level in 1 year by 2.7 percent from 3.0 percent.

The General Business Condition Index for the Empire State Federal Reserve New York Manufacturing survey rose to 1.9 in September from minus 19.0 in August, better than market expectations.

"At the moment there is no data showing a recession. However, the Fed is still pointing at the end of next year, the interest rate is lower," said Joseph Trevisani, senior analyst at FXStreet.com.

If the credit market is still convinced that when you raise the interest rate as much as the Fed does, you will end up experiencing a recession... where will people go? They will switch to dollars," he continued, quoted by ANTARA, Saturday, September 16.

The Federal Reserve will hold a policy meeting next week on September 19'20. The central bank, according to CME's FedWatch Tool, is largely seen as going to keep interest rates unchanged, with 97 percent expectations of not taking any action.

In the euro zone, the drop in interest rates was not included in the European Central Bank (ECB) agenda, ECB President Christine Lagarde said that on Friday it rejected some market speculation that a reversal of interest rates could begin in the first half of 2024.

At the end of New York trading, the euro rose to $1.0660 from $1.0636 in the previous session, and the English pound fell to $1.2384 from $1.2402.

The US dollar was purchased at 147.8570 Japanese yen, higher than 147.4410 Japanese yen in the previous session. The US dollar increased to 0.8972 Swiss francs from 0.8962 Swiss francs, and increased to 1.3516 Canadian dollars from 1.3509 Canadian dollars. The US dollar fell to 11.1821 Swedish krona from 11.2022 Swedish krona.