Dollar plunges again, remains below 16 month peak

Dollar plunges again, remains below 16 month peak

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The price of the greenback once again reduced in Asia on Thursday morning. It was nowhere near the sixteen-month peak. In a recent rally, the US currency pressed pause. It triggered investors to inquire about whether the rally was slowing down. 

The US dollar index edged down to 95.748 by 0.08 per cent by 95.748 at 3:40 AM GMT (22:40 PM ET). It surged to 96.226 on Wednesday. Interestingly, it was the highest it climbed after mid-July 2020. 

The USD/JPY pair edged down to 114.05 by 0.02 per cent. Moreover, the AUD/USD pair slipped to 0.7268 by 0.02 per cent, while the NZD/USD pair edged up to 0.7020 by 0.33 per cent. 

The USD/CNY pair edged up to 6.3787 by0.02 per cent, while the GBP/USD pair surged to 1.3494 to 0.10 per cent. Meanwhile, in the United Kingdom, inflation climbed in October. The consumer price index grew 1.1 per cent month-on-month. While on a year-on-year basis, it hiked to 4.2 per cent. 

On the other hand, the Bank of England is running under pressure due to the higher than anticipated levels to increase interest rates in 2021, December month. 

On the other side, the euro remained sixteen-month low at USD 1.1316 because the European Central Bank is in the bank of the line for increasing interest rates.

The sales data earlier provided the boost for the dollar post the better than anticipated data of retail sales in the US. Notably, the US inflation had in October had hit a 30-year high. Around the 2022 middle, the US Federal Reserve may hike rates. 

Moreover, several investors found an opportunity in the dollar after its dip. They invested in it. Also, the commodity currencies tumbled due to falling oil prices. The Canadian dollar (CAD) was at 1,2608 against the US dollar, hitting six week low on Wednesday. 

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