The U.S. dollar firmed up against its rivals on Wednesday, rebounding from losses posted a session earlier, amid optimism about economic recovery.
The trend in U.S. Treasury yields and the economic impact of stricter lockdown measures on the euro area economy impacted the movements of currencies.
According to a report released by the Labor Department Wednesday morning, U.S. consumer prices increased in line with economist estimates in the month of December.
The report said the consumer price index rose by 0.4% in December after edging up by 0.2% in November.
The Labor Department said the advance by the consumer price index was driven by an 8.4% jump in gasoline prices, which accounted for more than 60% of the overall increase.
The dollar index was up 0.28% at 90.34 a little while ago, after having advanced to 90.45 earlier in the day.
Against the Euro, the dollar firmed up to $1.2157, gaining more than 0.4% from Tuesday’s close. Eurozone industrial production growth accelerated unexpectedly in November, climbing by 2.5% month-on-month, faster than the 2.3% increase seen in October, data from Eurostat showed. This was the fastest growth in four months and far exceeded the economists’ forecast of 0.2%.
The Pound Sterling was weaker by 0.23% against the dollar, fetching $1.3635 a unit.
Against the Yen, the dollar was firmer by 0.13%, fetching 103.88 a unit.
The dollar was stronger against the Aussie by 0.5% with the AUD-USD pair quoting at 0.7733.
The Swiss franc was sliding to 0.8878, giving up 0.14%, while the Loonie was up marginally at C$1.2703 a dollar.
The material has been provided by InstaForex Company – www.instaforex.com