The dollar fell versus competing currencies today after low factory inflation figures, at the same time the euro got a strong boost from the ECB’s message implying it could be getting ready to cut the hefty monetary stimulus.
The dollar index, following the rate against a basket of 6 competing currencies, dipped a little to 1.814 .DXY. In case it drops lower than 91.751, the level of January 2, this would become the worst result since September 20.
The index was set to lose 0.2% over the week, driven down by yesterday’s figures, which demonstrated that producer prices in the United States decreased last month, the first such case in around 18 months, it could mollify concerns of the possible inflation growth this year.
The euro rose by 0.2% to $1.2050, coming close to the last week’s $1.2089, a maximum of almost four previous months.
The euro zone currency gained yesterday, when the information that European Central Bank’s December gathering minutes contained messages that its officials could revisit communication stance at the start of the new year, instilling hopes that the bank is on its way to cut back on its broad monetary stimulus.