The U.S. dollar held its ground against major currencies on Thursday, as traders braced for upcoming central bank announcements from Britain, Europe, and Japan. Investors are carefully weighing these decisions, which could influence global currency markets and financial stability.
Data released on Thursday showed U.S. inflation in November rose 2.7% year-on-year, below economists’ expectations of a 3.1% increase. This weaker-than-expected inflation figure triggered a slight pullback in the dollar against some of its key counterparts, signaling cautious optimism in the markets.
Against the Japanese yen, the dollar slipped 0.14% to 155.43, and it dropped 0.26% to 0.793 against the Swiss franc. Meanwhile, the euro saw a modest gain after the European Central Bank held its policy rates steady and expressed confidence in the eurozone’s resilience despite global trade pressures. The euro was last trading at $1.1753 against the dollar.
Sterling, on the other hand, moved higher following a deeply divided Bank of England decision to cut rates, surprising many investors. The move reflects ongoing debates within the central bank over how best to balance inflation concerns with economic growth.
Overall, the dollar index, which measures the U.S. currency against a basket of global currencies including the euro and yen, declined slightly by 0.15% to 98.22. Traders now turn their focus to upcoming central bank meetings for cues on potential shifts in monetary policy that could shape currency markets in 2026.
source: cnbc