The dollar is stranded as investors ignore the rise in inflation… and gold loses 1%


After a week of anxious waiting, the markets received the high US inflation figure they were afraid of, then shrugged it off and moved on, leaving the US dollar under pressure and most major currencies stuck in tight ranges.
In early trading in the Asian session, the dollar incurred limited losses, as traders believed that there were enough exceptional rises within the 0.6 percent increase in consumer prices, last month, to support the US Federal Reserve’s insistence that inflation is likely to be temporary.
And the dollar bought 109.44 yen and is heading towards recording a limited weekly loss, as it is on the path of incurring modest weekly losses against the Australian dollar and the British pound, and it recorded in the latest trading of $0.7752 against its Australian counterpart and $1.41825 against the British currency.
According to “Reuters”, the dovish comments from the European Central Bank regarding its commitment to a high pace of bond buying caused the euro to remain at the level of $1.2189.
The data showed that US consumer prices rose 5 percent, on an annual basis, the largest increase in more than a decade, and core inflation rose 0.7 percent, on a monthly basis.
But big contributions from short-term hikes in airline tickets and used cars have convinced dealers that they won’t drive interest rates up any time soon.
The dollar index fell slightly after the publication of inflation data, and settled in the latest trading at 89.974, declining very slightly during the week.
The focus now turns to the US central bank meeting next week, but traders are now saying there may not be much shift in his rhetoric, which reduces the need to scale back stimulus.
The South Korean won rose 0.2 percent, to 1110.08 per dollar, after the central bank governor hinted at returning policy to normal in an advance version of a speech yesterday.
And the Indonesian rupiah gained about 0.4 percent, against the dollar, as the decline in US Treasury yields boosted the attractiveness of Indonesian bonds.
In terms of cryptocurrencies, Bitcoin has received good support above the $35,000 level despite more talk of scrutiny from regulators globally.
And Bitcoin recorded in the latest trading of $ 37,163.52, recording a rise of 3.5 percent on a weekly basis.
In addition, gold prices fell during yesterday’s trading, about 1 percent, after rising above $ 1900 an ounce, supported by the decline of the dollar and the decline in treasury yields, and after data showed the rise in inflation in the United States was not enough, for the Federal Reserve to change its monetary policy. .
And gold recorded in spot transactions about $1,881.09 an ounce yesterday, and it had recorded an increase in prices of more than 0.5 percent, since the beginning of the week.
Data revealed that US consumer prices rose strongly in May, which led to the largest annual increase in nearly 13 years, while weekly jobless claims fell to their lowest levels in nearly 15 months last week.
Record US treasury yields fell to their lowest level in three months, reducing the opportunity cost of acquiring the yellow metal, which does not yield a return.
The European Central Bank kept its monetary policy unchanged and pledged a regular flow of stimulus during the summer. Attention now turns to the US Central Bank’s policy meeting scheduled for June 15-16.
For other precious metals, silver rose 0.4 percent, to $ 28.07 an ounce, while platinum gained 0.1 percent, to $ 1151.98.
And palladium fell 0.1 percent, to 2772.71 dollars, and is on the path of recording a weekly decline.


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