The dollar was appointed to earn the second week

By chubuke

New York (Reuters) -The dollar fell, but it was still on the way to obtaining a second consecutive week of gains against their main peers on Friday after the data continued to show US economic flexibility, which could complicate the Federal Reserve efforts to reduce interest rates.

The dollar fell 0.21 % to 149.48 against the Japanese yen, on the right track for the fifth consecutive week of gains and trading near its highest levels since August 1.

The euro rose 0.31 % to $ 1.1701. He was on his way to finishing less week, with three consecutive weeks of gains.

American data takes steam from the price reduction rate of the Federal Reserve rate

The spending of American consumers, which represents more than two -thirds of economic activity, increased by 0.6 % in August, just higher than 0.5 % by the economists covered by Reuters.

And the data of the US Department of Commerce showed that the Personal Consumption Expenditure Index, which is the preferred inflation scale of the Federal Reserve, increased by 0.3 % last month, in line with expectations.

“I think it is clear that the strongest economic data has removed the steam from pricing for interest rate discounts, and this is a kind of its narrowness in teams with other countries and pushed the dollar up,” said John Felly, the Americas Fox.

“We still believe that the hedge behavior is very strong, so we still see a lot of sale forward to the dollar even while American assets, especially American stocks, continue to have influence from the outside, although this has taken some back seat this week as well as to some extent, but I think it is somewhat clear that federal reserve expectations will go to that in the short term,” Velis added. “

The dollar index, which measures greenery against a basket of currencies, including yen and euros, decreased by 0.33 % to 98.17. He was still on the right path for the second consecutive week of gains.

The return on notes has decreased for two years, which usually moves with interest rate expectations at the Federal Reserve, 1.8 basis points to 3.645 %.

The head of the Federal Reserve at Richmond Thomas Parkin said he sees limited risks of a significant rise in unemployment or inflation, allowing the Federal Reserve Balancing its two goals as it discusses more interest rate discounts.

The Veier Vice -Chairman to oversee the supervision of Michelle Bowman said that the central bank is close to achieving the goal of inflation by 2 % and that it believes that discounts in decisive interest rates are needed to ward off the growing troubles in the labor market.

Barkin and Bowman are the latest Federal Reserve officials to comment on the decision of the Federal Reserve last week to start lower prices.

Traders priced an 89.8 % chance to reduce the 25 -point interest rate at the next meeting of the Federal Reserve, a decrease from the possibility of about 92 % a week ago, according to the Fedwatch tool for CME.

“The dollar is anxiously anxious in the range, but the lowest dangerous to the uncontrolled relaxation, based on the location,” he wrote in an investor. “Axial function reports.

Data on Thursday showed that the GDP in the United States increased by 3.8 % from April to June, overcoming expectations.

The dollar fell 0.23 % to 0.798 against the Swiss franc. He was still on the right path to finish the week higher, with six consecutive weeks of losses.

(Participated in the reports of Chipoic Ogdishhen by Mark Potter and Margareta Choi)