Wednesday, July 17, 2024
HomeAmericaU.S. dollar stays nearly flat following GDP revisions

U.S. dollar stays nearly flat following GDP revisions

The U.S. dollar stayed nearly flat in late trading on Wednesday, after the robust revisions in U.S. gross domestic product (GDP) figures for the third quarter.

The dollar index, which measures the greenback against six major peers, rose 0.02 percent to 102.7643 in late trading.

The U.S. Commerce Department said on Wednesday that it now estimates the country’s GDP grew at an annualised pace of 5.2 percent in the third quarter, up from its initial estimate of 4.9 percent. Non-residential fixed investment and state and local government spending were stronger than expected, but consumer spending growth ticked down to 3.6 percent from 4 percent in the advance estimate.

Wall Street edged higher after the GDP revision, while Federal Reserve officials’ remarks left unresolved questions about the duration of the central bank’s restrictive policy. Yields on U.S. government bonds also maintained their recent march downward.

JPMorgan Chase CEO Jamie Dimon delivered a harsh assessment of the American economy on Wednesday, saying the lower third of earners should be “pissed off” about their status. “If you look at the U.S., yes, you know, almost all-time low unemployment, but inflation is hurting people. The bottom third, I kind of think they have a right to be pissed off. I would probably be a little pissed off if I were them.”

While in the eurozone, Germany’s inflation rate fell to 2.3 percent in November, its lowest level since June 2021. In late New York trading, the euro decreased to 1.0982 U.S. dollars from 1.0990 dollars in the previous session, and the British pound rose to 1.2707 U.S. dollars from 1.2698 dollars in the previous session.

The Japanese yen is an “obvious winner” as G10 central banks’ tightening cycle draws to a close, while the dollar “is likely to weaken over the next couple of years,” Capital Economics’ Jonas Goltermann said in a report on Wednesday. The U.S. dollar bought 147.2500 Japanese yen, lower than 147.4240 Japanese yen of the previous session.

The U.S. dollar decreased to 0.8729 Swiss francs from 0.8777 Swiss francs, and it rose to 1.3584 Canadian dollars from 1.3568 Canadian dollars. The U.S. dollar increased to 10.3537 Swedish kronor from 10.3320 Swedish kronor.




Most Popular