The super dollar plummeted for signs of economy slowdown in the US economy

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A series of data showed that the US economy is slowing after multiple interest rate hikes by the Federal Reserve, as the market anticipates a pause in monetary policy tightening this year

The super dollar fell in volatile trading on Thursday as a series of data continued to show the US economy slowing following multiple interest rate hikes by the Federal Reserve, as the market anticipates a pause in tightening. monetary policy this year.

Data on Thursday showed the total number of US housing starts fell 1.4% to 1.382 million units last month. Construction permits fell 1.6% to 1.330 million.

Manufacturing activity in the Mid-Atlantic region weakened again in January. The Philadelphia Fed’s monthly manufacturing index rose to -8.9 this month from -13.7 in December, a bigger improvement than expected by economists in a Reuters poll.

However, initial claims for state unemployment benefits fell by 15,000 in the week ending January 14, to a seasonally adjusted 190,000. Economists polled by Reuters had expected 214,000 applications.

“The housing market is in a recession and the Fed’s regional surveys are weak and show that business activity is struggling,” said Edward Moya, an analyst at OANDA in New York.

“However, the initial jobless claims report reinforces the strength of the labor market. The labor market has to break for inflation to continue to come down.”

In afternoon trading in New York, the dollar was down 0.4% against its Japanese peer at 128.455 yen, a day after the Bank of Japan’s decision to maintain its ultra-loose monetary policy.

The euro was up 0.4% against the US currency at $1.0831. It reached a nine-month high of $1,089 on Wednesday, before easing ground.

Source: Ambito