The dollar rose today, Thursday, after a sharp decline on Wednesday following data that showed a slowdown in inflation in the United States, while the Japanese yen increased after strong gains the previous day. The dollar index, which measures the currency's performance against a basket of six major currencies, rose by 0.24% to 104.45 after falling 0.75% on Wednesday, as traders raised their expectations regarding U.S. interest rate cuts, now anticipating two reductions by the end of the year.
The dollar dropped 1% against the yen on Wednesday after the data and fell another 0.11% today, Thursday, to 154.74, after retreating to 153.6 before weak Japanese growth data affected the yen. The Japanese currency has decreased nearly 9.5% this year, as the Bank of Japan has maintained an accommodative monetary policy, while rising U.S. interest rates have attracted funds toward U.S. bonds and the dollar.
The euro reached a two-month high at 1.0895 dollars on Thursday before declining 0.1% to 1.0871 dollars. The British pound hit a monthly high at 1.2675 dollars before retreating slightly. The Australian dollar, which rose 1% on Wednesday, reached a four-month high of 0.6714 US dollars but dropped after an unexpected increase in unemployment in Australia, currently trading at 0.6676.
In terms of cryptocurrencies, Bitcoin recorded its highest level in three weeks at 66,695 dollars before retreating slightly.
