Dollar Rises Against Major Counterparts

(RTTNews) - The U.S. dollar climbed higher on Monday, lifted by recent data showing an increase in the annual rate of consumer price growth, and comments from Federal Reserve Chair Jerome Powell that the central bank is in no hurry to cut rates, and is content to remain in wait-and-watch mode.

Data released by the Commerce Department on Friday showed the annual rate of consumer price growth ticked up to 2.5% in February from 2.4% in January, in line with estimates.

Meanwhile, the annual rate of growth by core consumer prices, which exclude food and energy prices, slowed to 2.8% in February from an upwardly revised 2.9% in January. Economists had expected the pace of core price growth to come in unchanged compared to the 2.8% originally reported for the previous month.

After the inflation data, Fed Chair Jerome Powell said that the central bank will not overreact to the data, suggesting the bank is content to remain in wait-and-watch mode.

A report released by the Institute for Supply Management this morning showed a modest growth in U.S. manufacturing activity in the month of March, contributing to a jump in Treasury yields.

The ISM said its manufacturing PMI jumped to 50.3 in March from 47.8 in February, with a reading above 50 indicating growth in the sector. Economists had expected the index to inch up to 48.4.

With the much bigger than expected increase, the index returned to expansion territory for the first time since September 2022.

The dollar index, which advanced to 105.08, was at 104.97 a little while ago, gaining about 0.4%.

Against the Euro, the dollar firmed to 1.0744 from 1.0798. Against Pound Sterling, the dollar strengthened to 1.1551, gaining from 1.2626.

The dollar gained against the Japanese currency, rising to 151.65 yen a unit. The Aussie weakened against the dollar with the AUD/USD pair trading at 0.6488. Against Swiss franc, the dollar firmed, fetching CHF 0.9043 a unit, up from CHF 0.9016. The dollar was up against the Loonie at C$ 1.3573.