US dollar stability increases as US inflation rates decrease, raising likelihood of a June interest rate cut by the Federal Reserve.

The US dollar remained stable as data showing a decrease in US inflation rates strengthened the likelihood of an interest rate cut in June by the Federal Reserve. The PCE price index increased by 0.3% in February, falling short of the 0.4% increase predicted by economists. This data supports the Federal Reserve Chair Jerome Powell's statement that US inflation is aligning with what the Fed would like to see. The CME FedWatch tool now shows a 68.5% chance of a rate cut in June, up from 57% at the end of last week. The Japanese yen remained near 152 per dollar, with traders on edge about the possibility of intervention by Japanese authorities.

April 01, 2024
7 Articles