Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Dollar ticks up before US data, bitcoin hits record high

Published 14/03/2024, 08:09 pm
© Reuters. Representations of cryptocurrency Bitcoin and U.S. dollar are seen in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration/File photo

By Harry Robertson

LONDON (Reuters) -The dollar inched higher on Thursday as investors waited for U.S. economic data, while bitcoin rose to a record high above $73,800.

The dollar index, which gauges the currency against six major peers, rose 0.1% to 102.83.

It has largely shrugged off Tuesday's hotter-than-expected U.S. consumer inflation data and is roughly unchanged since the figures. The index is up around 1.5% this year as U.S. data has shown that the economy remains strong, causing investors to rein in their bets on rapid and deep interest rate cuts.

Data due at 1230 GMT (8.30 a.m. ET) - on producer inflation, retail sales and weekly jobless claims - could provide more clues about the timing of rate cuts.

"Today's data in the U.S. will be quite important… in a quiet market environment," said Francesco Pesole, FX strategist at ING. "That's surely going to be the big event today."

He added: "This is very much a bit of an in-between week, just waiting for the central bank meetings next week to see what happens."

The Bank of Japan will set interest rates on Tuesday next week, followed by the Federal Reserve on Wednesday and the Bank of England on Thursday.

The euro was slightly lower at $1.0942 on Thursday, with no major European economic data to inject volatility, taking its fall for the year to around 0.9%. Sterling was up 0.1% at $1.2811, up 0.6% for the year.

Bitcoin continued its upward march, hitting a record $73,803. Exchange-traded bitcoin funds and optimism that the Fed will cut interest rates this year have boosted the biggest cryptocurrency.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The dollar was little changed at 147.75 yen, nursing losses of 2% over the last two weeks as investors have positioned for the Bank of Japan to potentially raise interest rates out of negative territory at its meeting next week.

Sources told Reuters that Japan's central bank will debate ending negative rates if big firms' wage talks yield strong results.

Preliminary results of the spring wage negotiations are due on Friday, with several of the country's biggest companies having already agreed to meet union demands for pay increases.

Elsewhere, the dollar climbed 0.1% against the Swedish crown, to 10.239 crowns, after data showed Sweden's headline inflation slowed more than expected in February.

Market pricing on Thursday showed traders see a roughly 75% chance of the Fed cutting rates by June.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.