Thursday 11/Sep/2025 – 10:17 AM
The US dollar stabilized in early trading today, Thursday, supported by an unexpected decrease in the prices of American producers, which strengthened expectations that the Federal Reserve (the US Central Bank) will go to reduce interest rates at its upcoming meeting next week.
The markets are cautious with consumer price data, which will be released later in the day, which will provide additional indicators on the path of monetary policy. In this context, the dollar index rose by 0.1% to 97.83, continuing its rise for the third day in a row, after the work statistics office showed that the producers’ price index decreased by 0.1% during the month of August, which came after a previous leap of 0.7% in July.
Reducing interest rates by the Federal Reserve
Rodrigo Caters, a currency expert at the National Bank of Australia, commented on these developments by saying that the market is highly preparing to reduce interest rates by the Federal Reserve in September, and perhaps for another three times this year, considering that the positive result of the producers’ price index enhances the validity of these expectations. Trading is currently heading on the basis that lowering American interest has become certain, and that the remaining question is about the size of this reduction. According to the CMG Group, traders expect 8.9% to reduce 50 basis points at the US Central Bank meeting for this month, while they consider that the reduction by at least 25 basis points is settled.
On the other currencies, the euro rose 0.04% to $ 1.1699 before the European Central Bank meeting, which is widely expected to keep interest rates unchanged. On the other hand, the US dollar settled against the Japanese yen at 147.43 yen, after data of wholesale price in Japan showed 2.7% on an annual basis in August, indicating the continued inflationary pressures in the fourth largest economy in the world. The Australian dollar also fell 0.1% to $ 0.66095, after it had recorded its highest level since last November, while the yuan increased in external transactions by 0.03% to 7.1184 for the dollar in early Asian transactions. Meanwhile, the New Zealand dollar decreased by 0.1% to $ 0.5936, while the pound was traded at $ 1.3525, unchanged so far during the day.
