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New York: The US dollar exchange rate strengthened at the end of the session on Friday (Saturday morning WIB). US consumer confidence shows that households expect higher inflation over the next year.

Launch ChinaSaturday October 14, 2023, the dollar index, which measures greenbacks Against six other major currencies, it rose 0.05 percent to 106.6424 in late trading.

The University of Michigan’s consumer confidence index fell to 63 in October from 68.1 the month before, hitting its lowest level since May.

According to the report, Americans’ expectations for headline inflation for next year jumped to 3.8 percent in October from 3.2 percent the previous month, the highest level since April.

“Personal finance assessments declined by about 15 percent, primarily due to a substantial increase in concerns about inflation, and expectations for business conditions a year from now fell by about 19 percent,” said Joanne Hsu, director of UM’s consumer survey.

Read also : U.S. employment growth data can’t withstand dollar weakness

 

Bond yields are higher

Meanwhile, Christopher Rupkey, chief economist at FWDBONDS New York, said a stronger US dollar due to rising bond yields could be undermined as US exports are priced out of global markets.

“It does a good thing because it lowers the prices of goods imported into this country and helps the Fed fight inflation,” Christopher Rupkey said.

However, Philadelphia Federal Reserve President Patrick Harker said Friday that he thinks the central bank could stop raising interest rates.

“I believe we are at the point where we can keep interest rates where they are,” Harker said in a prepared speech for the Delaware State Chamber of Commerce.

In the euro zone, European Central Bank President Christine Lagarde said authorities would raise interest rates again if necessary, but were also assessing the impact of the previous decision.

By the end of trading in New York, the euro fell to $1.0511 from $1.0527 in the previous session, and the pound sterling fell to $1.2135 from $1.2174.

The US dollar bought 149.5050 Japanese yen, lower than 149.8170 Japanese yen in the previous session. The US dollar fell to 0.9012 Swiss francs from 0.9086 Swiss francs, and it fell to 1.3658 Canadian dollars from 1.3692 Canadian dollars. The US dollar rose from 10.9933 Swedish crowns to 11.0126 Swedish crowns.