Selangor Journal
A woman holds US dollar banknotes in this picture taken on May 30, 2022. — Picture by REUTERS

US dollar tumbles after cooler-than-expected inflation report, gold rises

NEW YORK, Dec 14 — The US dollar weakened significantly in late trading on Tuesday after data showed US consumer inflation rose less than expected in November reported Xinhua.

The headline US consumer prices index (CPI) rose 0.1 per cent last month, below the 0.3 per cent consensus, for a 7.1 per cent year-on-year increase, the Labour Department reported on Tuesday.

The core CPI, which excludes food and energy, rose 0.2 per cent, also below the 0.3 per cent consensus, for a 6 per cent year-on-year increase.

While there were signs of easing in price pressures, further solid progress against inflation is needed before the Federal Reserve can comfortably assume it is tracking back to 2 per cent, according to experts.

The dollar index, which measures the greenback against six major peers, fell 1.09 per cent to 103.9840 in late New York trading.

The euro was up to US$1.0639 from US$1.0525 in the previous session, and the British pound rose to US$1.2374 from US$1.2260 in the previous session.

The US dollar bought 135.49 Japanese yen, lower than 137.76 Japanese yen of the previous session. The US dollar decreased to 0.9287 Swiss francs from 0.9370 Swiss francs, and it was down to 1.3557 Canadian dollars from 1.3637 Canadian dollars. The US dollar was down to 10.2114 Swedish Kronor from 10.3423 Swedish Kronor.

In Chicago, gold futures on the COMEX division of the New York Mercantile Exchange rose on Tuesday on lower-than-expected inflation data.

The most active gold contract for February delivery rose US$33.2, or 1.85 per cent, to close at US$1,825.5 per ounce.

This is the highest finish for gold since June 24.

Silver for March delivery rose 58.7 cents, or 2.51 per cent, to close at US$23.99 per ounce. Platinum for January delivery rose US$30.9, or 3.07 per cent, to close at US$1,038.9 per ounce.

— Bernama

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