US dollar stronger on Consumer Price Index report

The US dollar gained on the euro, the yen, and most major currencies on Wednesday as inflation was reported to have grown more than expected, to 4.3 percent overall and to 2.5 percent for the core CPI, in January.

At just before noon in New York the dollar traded at $1.4666 to the euro, at $1.9404 to the pound, while it cost ¥107.9900 to buy a dollar.

The pound was lower on the news that the Bank of England’s vote on interest rates recently was 8 to 1, with one official voting for a larger rate cut than was issued.

In midday trade in New York, the pound traded at 75.58p to the euro while it cost ¥209.5489 to buy a pound.

The South African rand declined versus all major currencies, trading at $7.8975 to the US dollar, at R11.582 to the euro, and at R15.326 to the pound, after the finance minister there said that institutional investors will be allowed to invest more money abroad.

The yen gained on both the rand and the Norwegian krone as declines in equities markets spurred investors to pull out of carry trades, trading at ¥13.682 to the rand and at ¥20.096 to the krone.

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