Dollar near January levels, global stocks rise after U.S. producer price inflation data
The U.S. dollar was near its lowest since January against a currency basket on Thursday after a lower-than-expected reading of U.S. producer price inflation, while global stock markets rose.
U.S. Treasury yields fell as some corporate debt issuance that has weighed on the market passed. German government bonds held relatively steady, after a dramatic two-and-a-half week selloff.
U.S. and German bond yields, at their highest in months, have made equities look more expensive in comparison to debt and kept global equity markets subdued.
A report showed the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, indicating the U.S. jobs market was on a better footing, though other data showed a strong dollar and lower oil prices suppressed producer price inflation in April.
That suggests the Federal Reserve will probably not raise interest rates until later in the year.
“People are pretty focused on the weak numbers for the U.S.,” said David Gilmore, partner at Foreign Exchange Analytics in Essex, Connecticut. “People are increasingly wondering if the Fed is going to be ready to begin raising rates in September.”
With a rise in U.S. interest rates seeming more distant, investors bailed out of long dollar positions.
The dollar index, which measures the greenback against a basket of six major currencies, was down 0.3 percent.
