EUR/USD slid 0.38% to 1.1202, the lowest since September 9. Sterling initially declined against the dollar on Thursday, after the Bank of England left interest rates at their record lows and indicated that it would cut them further later this year but reversed course after weak USA retail sales data boosted Sterling. The dollar index, which measures the greenback against a basket of six major currencies, was last up 0.10 percent at 95.421.The euro was last down 0.11 percent against the dollar at $1.1245.
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JOHANNESBURG -The rand weakened on Friday as the dollar firmed after data showing faster-than-expected growth in USA consumer inflation supported the case for the Federal Reserve to raise interest rates later this year. Spot gold is expected to revisit its September 1 low of $1,301.91 per ounce, as it has broken a support at $1,319, according to Reuters technical analyst Wang Tao.
He said his bank had a target of 108 yen per dollar for the end of the year, predicated on the Fed raising interest rates in December, although that seemed subject to risks from November’s presidential elections.
The dollar sagged early on Friday after the lacklustre United States economic data. Earlier in the day, data showed retail sales retail sales fell at a much slower pace than expected in August, which had sent sterling to $1.3243 before the publication of the BoE’s latest minutes.
The pound remained under pressure after the Bank of England kept monetary policy on hold on Thursday, but indicated that it could cut interest rates again as soon as November unless the economy picks up. “But we think they would want to see further the reaction of the market to figure out what to do on interest rates (if he wins)”.
The Australian and New Zealand dollars were weaker, with AUD/USD down 0.29% at 0.7496 and with NZD/USD sliding 0.30% to 0.7293.
The euro inched up 0.1 percent to $1.1248, en route to eke out a 0.1 percent weekly gain.
Government bonds also weakened, with the yield for the benchmark instrument due in 2026 adding 1.5 basis points to 8.71 percent. Gold “couldn’t rally on a day it should have rallied, and that sentiment has carried over a little bit today”.
“The US yield curve traded to its steepest in two months”. The yellow metal settled down 1.6% for the week.
The US and Japanese central banks hold monetary policy meetings on Sept 20-21.
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U.S. West Texas Intermediate (WTI) crude futures rose 33 cents, or 0.8 percent, to close at $43.91.
