The USD index, which compares the dollar to other major currencies, decreased 0.2% to 102.4918 during this session.
The “hawkish” comments made by the ECB President during this session were an influence on the USD. Lagarde predicted that inflation in the Eurozone will continue to be too high for a very long time while speaking at an annual meeting of major central banks held in Portugal.
She said that policymakers were “uncertain” as to when interest rates will peak.
The British pound increased to 1.2751 U.S. dollars from 1.2721 dollars in the previous session during the late New York trading, and the euro increased to 1.0960 U.S. dollars from 1.0915 dollars.
This session’s currency rate of 1 USD for 144,0130 Japanese Yen was lower than the previous session’s exchange rate of 143.4470 Japanese Yen for 1 USD, indicating that the yen remained still weak.
After news that US consumer confidence increased to a one-and-a-half-year high, the decline in the dollar was slightly restrained.
The US consumer confidence index, therefore, increased from 102.5 in May to 109.7 in June, according to survey findings from the Conference Board that were made public on June 27. This was the highest level since January 2022. In the survey conducted last month, consumer inflation forecasts for the coming 12 months dropped from 6.1% to 6.0%, the lowest level since December 2020.
However, US consumers continue to believe that a recession is a possibility for the economy during the next 6 to 12 months.