It was a quiet Thursday with little to report, as the local currency trod water for most of the day, ending the session little changed from the previous close.
Sideways trading was the dominant theme in the local currency market with activity from both demand and supply counters remaining well balanced through the session.
In today’s session, market chatter alludes to range-bound trading as demand and supply forces contest for dominance.
The U.S. dollar edged higher yesterday, supported by firmer U.S. inflation data, but a rise in the pound and yen kept gains in check.
The Labor Department report said its consumer price index rose 0.2%, in line with expectations last month, while the year-on-year CPI rose to 2.5%, topping forecasts for a 2.3% rise.
The euro fell to $1.0841, as analysts call for a further decline as the sluggish pace of growth in the EU
continues accompanied by weak inflation dynamics.
A surge in the pound, meanwhile, kept the dollar in check on rising hopes that Prime Minister Boris Johnson eyed fiscal stimulus after showing U.K. finance minister Sajid Javid the door.
Javid reportedly resigned after Johnson asked him to fire his closest advisers in order to keep his position. The pound rose to $1.3051.