June 8, 2023

On Thursday, the dollar extended the gains it started yesterday as investors waited for US employment and inflation data, looking for signs that could mean a slowdown in interest rate hikes and a slowdown in the US currency.
The euro fell 0.27 percent to $0.9859 after minutes of a European Central Bank meeting released last month showed policymakers worried that inflation could remain elevated.
The British pound also fell 0.6 percent, while the dollar strengthened against the Japanese yen and the Swiss franc.
And the dollar index rose 0.3 percent, off a 20-year high of 114.78 it hit in late September.
One of the main factors affecting the currency markets at the moment is fluctuating expectations about the severity of interest rate hikes that could be announced by central banks, especially the Federal Reserve (US central bank).
US employment data will be released on Friday, while inflation data will be released next week.
The Australian dollar fell 0.5% to $0.6455, still struggling after an unexpectedly small 25 basis point hike in Australian interest rates.

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