* Graphic: World FX rates tmsnrt.rs/2RBWI5E
(Adds quotes, updates prices; changes dateline, previous
LONDON)
By Karen Brettell
NEW YORK, June 24 (Reuters) - The dollar dipped on Thursday
as investors evaluated the likelihood that the U.S. Federal
Reserve will be more aggressive in stamping out high inflation
if it persists, while the pound weakened after the Bank of
England made no changes to its monetary policy.
Fed policymakers have been offering differing viewpoints on
how long inflation is likely to stay high and when it will be
appropriate to tighten monetary policy, after the Fed last week
surprised markets by forecasting two rate hikes in 2023.
The dollar has slipped since reaching two-month highs on
Friday in the wake of the Fed meeting.
"I do suspect we'll have a little bit more consolidation and
then some more dollar upside," said Erik Nelson, a macro
strategist at Wells Fargo in New York.
"The Fed put the market on notice with regards to its
inflation target and new mandate, and really just the idea that
they would be completely and resolutely dovish forever ... so I
think there's more room for a shakeout here," Nelson said.
The dollar fell slightly after data on Thursday showed that
fewer Americans filed new claims for unemployment benefits last
week as the labor market recovery from the COVID-19 pandemic
gains traction amid a reopening economy.
Other data showed that new orders for key U.S.-made capital
goods unexpectedly fell in May, likely held back by shortages of
some products.
The next major U.S. economic focus will be producer price
data on Friday.
The dollar index was last down 0.06% against a basket
of currencies at 91.733. It is holding below a two-month high of
92.408 reached on Friday.
Sterling slipped after the Bank of England said inflation
would surpass 3% as Britain's locked-down economy reopens, but
the climb further above its 2% target would only be "temporary"
and most policymakers favored keeping stimulus at full throttle.
"While the underlying tone was quite upbeat, and we do think
that there was a clearer hawkish lean, it was not hawkish enough
for those looking for a sharper turn after last week's FOMC
meeting," analysts at TD Secuities said in a report on Thursday.
The British pound was last down 0.35% at $1.3916.
The euro gained 0.13% on the day to $1.1942.
German business morale rose by more than expected in June and
hit its highest level since November 2018 on companies' surging
optimism about the second half of the year in Europe's largest
economy, a survey showed on Thursday.
The greenback gained to 111.11 Japanese yen
overnight, the strongest since March 2020, before dropping back
to 110.78. Data on Thursday showed that Japan's corporate
services prices rose at the fastest annual pace in eight months
in May.
========================================================
Currency bid prices at 9:31AM (1331 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index 91.7330 91.7990 -0.06% 1.947% +91.8730 +91.6580
Euro/Dollar $1.1942 $1.1927 +0.13% -2.26% +$1.1956 +$1.1918
Dollar/Yen 110.7750 110.9750 -0.14% +7.29% +111.1100 +110.7400
Euro/Yen 132.30 132.32 -0.02% +4.24% +132.5700 +132.1200
Dollar/Swiss 0.9183 0.9181 +0.04% +3.82% +0.9200 +0.9175
Sterling/Dollar $1.3916 $1.3966 -0.35% +1.86% +$1.3986 +$1.3892
Dollar/Canadian 1.2306 1.2307 -0.02% -3.37% +1.2314 +1.2283
Aussie/Dollar $0.7581 $0.7577 +0.06% -1.45% +$0.7590 +$0.7566
Euro/Swiss 1.0966 1.0950 +0.15% +1.47% +1.0976 +1.0952
Euro/Sterling 0.8581 0.8542 +0.46% -3.98% +0.8591 +0.8534
NZ $0.7063 $0.7047 +0.20% -1.67% +$0.7073 +$0.7043
Dollar/Dollar
Dollar/Norway 8.5105 8.5420 -0.28% -0.80% +8.5440 +8.4940
Euro/Norway 10.1647 10.1745 -0.10% -2.89% +10.1903 +10.1347
Dollar/Sweden 8.4657 8.4771 -0.04% +3.29% +8.5061 +8.4533
Euro/Sweden 10.1105 10.1149 -0.04% +0.34% +10.1279 +10.1020
(Reporting by Karen Brettell; additional reporting by Elizabeth
Howcroft in London; Editing by Angus MacSwan)
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