WASHINGTON (dpa-AFX) - The U.S. Dollar value moved lower as investors trimmed their expectations on a rate hike by the U.S. Federal Reserve in its September meeting after Federal Reserve Governor commented that next week's inflation report will predominantly decide if he wants a rate hike or not.
Today, the U.S. Dollar Index DXY, which measures the Greenback against a basket of other major currencies, was last seen trading at 98.98, down by 0.61 (or 0.61%).
While against the Euro, the USD was trading at 1.163, down by 0.33%, against the GBP, the USD was trading at 1.353, down by 0.31%.
Against the USD, the Japanese Yen was trading at 155.801, up by 1.82% and the Swiss Franc was trading at 0.808, up by 0.66%.
Against the USD, the Canadian Dollar was trading at 1.380, up by 0.33%. The S&P Global Canada Composite Purchasing Managers' Index declined to 47.80 in August from 49.70 in July and the Services PMI fell to 46.80 in August from 49.10 in July.
Against one unit of Australian Dollar, the USD was trading at 0.720, down by 0.46%.
Last week, U.S. Federal Reserve Chair Kevin Warsh delivered his maiden speech at the Jackson Hole Symposium in Wyoming.
Warsh stressed on the need to closely watch inflation numbers and stated that if inflation does not fall to the 2% range which is the goal of U.S. Fed, the central bank would have to intervene.
Warsh basically hinted at the need to increase interest rates if inflation numbers do not meet the Fed's expectations.
The U.S.-Iran war which entered its second phase after U.S. forces launched fresh strikes over the weekend is not showing any sign of easing.
Iran retaliated by targeting U.S. bases in Jordan which were countered by the U.S.
Angered by this response, U.S. President Donald Trump announced a second wave of attacks on Iran which triggered a fierce reaction from Iran.
Iran launched strikes targeting U.S. bases in several Arab nations that serve as U.S. allies.
Amid the ongoing re-escalation, the Strait of Hormuz continues to remain shut.
Both the U.S. and Iran have been sending conflicting messages on who controls the shipping traffic with each asserting their authority.
Inflationary pressures increased among global major economies, sparking expectations of a rate hike by the Fed.
Yesterday's American Data Processing group's data revealed that the private sector added 38,000 jobs in August, the lowest since January, following an upwardly revised 46,000 in July and below forecasts of 47,000.
While large companies added 34,000 jobs, those with fewer than 50 employees added 3,000.
Today, U.S. Labor Department's data showed that the number of people claiming unemployment benefits inched up by 2,000 to 206,000 for the fourth week of August.
Continuing jobless claims increased to 1,779,000 for the week ending August 22 from 1,771,000 of the previous week.
Meanwhile, Federal Reserve Governor Christopher Waller stated today that he is more inclined to keep the interest rates untouched. However, he preferred to wait for August inflation data release next week.
Waller added that only if inflation is high, he would opt for considering a rate hike. His remarks suggest that an interest rate hike later this month may not be a done deal.
According to the CME Group's FedWatch Tool, currently investors are betting on a 50.60% chance of a 25-basis-point interest rate-hike at the upcoming meeting of the U.S. Federal Reserve on September 15-16 while the odds on rates being held at the current level stand at 49.40%.
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