US dollar stable, markets evaluate unclear US inflation data

US dollar stabilized against major currencies on Friday, as investors evaluated unclear data on consumer price inflation in the United States in light of bets that the Federal Reserve (the US central bank) will cut interest rates by March.

According to Reuters, consumer prices in the United States rose in December, with rents continuing to rise, which increased by 0.3 percent during the month, with a 3.4 percent annual increase, compared to economists’ expectations in a Reuters poll for an increase of 0.2 percent monthly and 3.2 percent annually. .

According to the CME FeedWatch tool, traders expect by 73.2% that the first US interest rate cut by 25 basis points will come in March, with several other cuts in the future.

The dollar index settled at 102.25, down from the highest level recorded on Thursday at 102.76, but much higher than its lowest level in 5 months at 100.61, which it reached in December, when traders began anticipating the possibility of cutting US interest rates several times during the current year.

The euro settled near $1.0977 after its gains against the US currency the previous day, while the British pound was trading at $1.2776, rising 0.1% during the day.

Meanwhile, the yen was trading near 145.11 to the dollar, moving away from the lowest level in a month of 146.41 that it reached on Thursday.

As for cryptocurrencies, Bitcoin settled unchanged in the latest trading at $46,118, after rising to its highest level in two years during the night hours, after the US Securities and Exchange Commission gave the green light on Wednesday to exchange-traded funds that invest directly in Bitcoin.