US dollar slightly lower against yen, euro, after | Money News

By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) – The U.S. dollar was marginally down against the yen and euro on Wednesday after information confirmed producer costs unexpectedly fell in August, cementing expectations that the Federal Reserve will resume slicing rates of interest later this month.

The dollar was slightly down against the yen at 147.37 following the information, whereas the euro turned marginally greater at $1.1714. Before the information, the U.S. currency was trading reasonably up on the day against each currencies.

A Labor Department report confirmed the Producer Price Index for ultimate demand fell 0.1% on a month-to-month foundation, after a downwardly revised 0.7% bounce in July. Economists polled by Reuters had forecast the PPI would rise 0.3% after a beforehand reported 0.9% surge in July.

But the PPI superior 2.6% on an annual foundation in August, in contrast with a 3.3% gain anticipated by economists polled by Reuters.

“The August PPI report paints a much less scary picture of prices of goods ‘in the pipeline’ than the July report,” Carl Weinberg, chief economist at High Frequency Economics wrote in emailed feedback after the information.

“Core goods prices did rise, but by a lot less than expected. The entire report shows a lower rate of increase in the prices of goods at the factory gate for August than for July.”

Following the information, fed funds futures are pricing in a 90% likelihood of a normal 25-basis-point cut this month and a 10% likelihood of 50-bp price decline, based on the CME’s FedWatch. That was at 93% and seven%, respectively, late on Tuesday.

Currency

bid

costs at

10

September

​ 01:10

p.m. GMT

Descripti RIC Last U.S. Pct YTD Pct High Low

on Close Change Bid Bid

Previous

Session

Dollar 97.766 97.803 -0.02% -9.88% 97.934 97.6

index 27

Euro/Doll 1.1703 1.1709 -0.03% 13.06% $1.1728 $1.1

ar 683

Dollar/Ye 147.42 147.41 0.01% -6.31% 147.62 147.

n 27

Euro/Yen 172.56​ 172.59 -0.02% 5.72% 172.74 172.

39

Dollar/Sw 0.7975 0.7976 -0.02% -12.13% 0.7992 0.79

iss 62

Sterling/ 1.3533 1.3526 0.06% 8.21% $1.3567 $1.3

Dollar 514​

Dollar/Ca 1.3855 1.3841 0.11% -3.64% 1.3864 1.38

nadian 39

Aussie/Do 0.661 0.6586 0.38% 6.84% $0.6626 $0.6

llar 58

Euro/Swis 0.9332 0.9337 -0.05% -0.65% 0.9345 0.93

s 26

Euro/Ster 0.8647 0.8651 -0.05% 4.5% 0.866 0.86

ling 41

NZ 0.5943 0.5925 0.35% 6.26% $0.5958 0.59

Dollar/Do 22

llar

Dollar/No 9.9209​ 9.98 -0.59% -12.71% 9.9938 9.90

rway 59

Euro/Norw 11.6118 11.6852 -0.63% -1.33% 11.692 11.6

ay 05

Dollar/Sw 9.3537 9.3787 -0.27% -15.1% 9.3977 9.33

eden 47

Euro/Swed 10.9478 10.9818 -0.32% -4.53% 10.9895 10.9

en 34

(Reporting by Gertrude Chavez-Dreyfuss; Editing by Aidan Lewis and Bernadette Baum)