The American currency has declined in the past few weeks, as inflation data and comments for US Federal Reserve officials indicated that the bank could soon slow down the pace of interest rates.
But the dollar settled Thursday, after the US retail sales data for October, which was issued on Wednesday, came stronger than expected.
Prices movements
The euro settled against the dollar at $ 1. 039 for the euro, after it recorded its highest level since July at $ 1. 048 on Tuesday.
The dollar index, which measures the performance of the US currency for 6 main currencies, has not changed at 106. 27.
The index fell by more than 7 percent since it reached the highest level in 20 years in September, but it remained about 10 percent during the year.
Simon Harvey, chief foreign currency analyst at Monics Europ, said that the dollar settled at a time when investors are trying to determine the direction of the American economy.
He added that positive consumption data indicates that the American economy does not face a difficult decline in the economy, but it does not know whether this will be positive for assets that involve risks or that it will encourage the Federal Reserve to further stress.
Harvey said that the largest price move may be for the British pound when British Finance Minister Jeremy Hunt announced the government’s budget plans later on Thursday.
It is expected to raise taxes and reduce spending, despite the recession waving on the horizon, in an attempt to enhance Britain’s reputation in the markets and calm inflation.
The British pound rose 0. 18 percent against the dollar to $ 1. 193 in the morning trading in London, and rose as much as the euro.
And strict statements issued by US Central Central officials last night led to the increasing doubts about a shift in politics, as Marie Dali, head of the Federal Reserve in San Francisco, said that the temporary pause was no longer on the table.
The dollar fell by 0. 2 percent against the Japanese yen, on Thursday, to 139. 28, as it was hovering around its lowest level in three months.
It decreased by 3. 7 percent a week ago, when US consumer inflation data for October came less than expected.
The Chinese yuan fell 0. 36 percent to 7. 126 against the dollar, as the new Kofid injuries raised fears that officials may order more closure.
The Australian dollar fell 0. 15 percent to $ 0. 673, while its New Zealand counterpart rose 0. 28 percent to $ 0. 616..
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