Following slight inflation, the US dollar witnessed the largest drop in the span of a year since November last year. On Tuesday, November 14, 2023, the US dollar reportedly dropped as much as 1.3 percent which is the largest drop in the past year. It came after the soft inflation allowed traders to ramp up bets. Meanwhile, the Federal Reserve will begin reducing interest rates by mid-next year, sending Treasury yields plunging. Do you know how the US dollar was performing on Wednesday after the biggest one-year tumble? If not, stick with this page and go through this column till the end for more details. Keep reading this article and drag down the page.
Reportedly, the Bloomberg gauge of the dollar dropped as much as 1.3% on November 14, 2023, Tuesday. It is the largest such drop that the US dollar witnessed since November 2022. On Wednesday, November 15, 2023, the US dollar opened close to the previous day’s close when the market opened propelling the won and ringgit to the top of the rankings of Asian currencies. The moves followed the report showing core inflation in October which slowed more than economists had predicted. Drag down the screen and learn more.
This year, the dollar had mostly rallied on the back of rising Treasury yields. But on Tuesday, November 14, 2023, the dollar lost ground against almost all of the world’s major currencies and the dynamic kicked into reverse causing traders to price in expectation that the Federal Reserve will reduce its interest rate by about 0.50 percentage point by mid next year, July. Monex’s Simon Harvey said, “Over recent weeks, it seemed as if there was a reluctance to buy into the dollar on data which supported the Fed’s higher-for-longer narrative. It isn’t surprising to see European and high-beta FX rally against the dollar as rate cut expectations are brought forward.”
On Tuesday, November 14, 2023, the Australian dollar among the Group-of-10 currencies, rallied as much as 2.1 percent which was the largest boost since January while the euro gained as much as 1.8% in its biggest intraday move in a year. The currencies slightly pared their moves on Wednesday. Among emerging Asian currencies, the Won gained 1.9 percent to lead gains on Wednesday, and it was followed by the Malaysian ringgit, which rose 1.3 percent. Stay tuned to this website for more details and further updates.