Weak data from China raised fears of investors concerning the postponement of a rate hike, the us dollar continued to decline against foreign currencies.
MOSCOW, 2 Nov. The dollar during trading Monday continues to show negative dynamics in relation to global currencies after the release of weak statistics from China, which has caused fears of investors concerning the postponement of a rate hike; however, the decline of the dollar slowed.
According to the trades, as at 13.47 GMT the dollar index (the dollar against a basket of currencies of six major U.S. trading partners) decreased by 0.01% to 96,82 item. The Euro-dollar exchange rate has grown up to 1,1024 $ 1,1007 dollar to the Euro. The dollar against the yen fell to 120,56 yen per dollar with 120,62 yen per dollar at the previous closing.
According to an independent survey Caixin and Markit Economics, the index of business activity (PMI) in the industrial sector of China in October amounted to 48.3 points versus 47.2 points in September. Thus, according to the State statistical Bureau of China, the PMI in manufacturing sector of China in October amounted to 49.8 points. A value above 50 indicates growth in activity, lower — its decline.
Last Wednesday the U.S. Federal reserve once again kept its base rate at a minimum level of 0-0. 25%, as analysts expected. Previously, the fed reported that for making decision on the first since 2006 the rate increase is necessary so that the level of inflation in the US was close to the target mark of 2%. Consumer prices in the USA in annual terms in September, unchanged, month-on-month deflation was recorded at 0.2%.
The reason for the failure to raise rates in October was also uncertainty about the state of the global economy. The negative effects of the economic slowdown of China and emerging markets may also put pressure on the economy, noted the regulator.
However, the reduction in the cost of the American currency contribute to internal statistics released on Friday. Consumer incomes in the country in September 2015 rose by 18.6 billion, or 0.1%, compared with August, while expenditure increased by 15.6 billion dollars — also 0.1%. Analysts had expected growth of revenues and expenditures by 0.2% in monthly terms.