TOKYO- The dollar continued to hover near a five-month low versus major peers on Thursday as investors looked to key US inflation data and a European Central Bank meeting later in the day to potentially set the direction for currency markets.
Investors have adopted a wait-and-see attitude all week, sucking volatility from the market and leaving major currencies mostly range-bound.
The dollar index has fluctuated narrowly around the psychologically important 90 level, and was last at 90.137.
The euro rose to a one-week high at $1.2218 on Wednesday only to finish little changed, and was essentially flat at $1.2178 in Asia.
The yen traded at 109.62 per dollar, also little changed from Wednesday and near the middle of the 109.19-110.325 range of the past two weeks.
Deutsche Bank’s Currency Volatility Index languished at its lowest level since February 2020.
The US Labor Department’s consumer prices data has been much anticipated after last month’s report showed consumer prices increased by the most in nearly 12 years in April.
That has stoked bets that higher prices could last longer than some anticipate, potentially calling into question the Federal Reserve’s insistence that current inflation pressures are transitory and monetary stimulus should stay in place for some time yet. – Reuters
