(Adds U.S. data, new analyst comment, FX table, byline, NEW YORK dateline; updates prices)
Rise in U.S. core PCE index, year-on-year, slows
Orders for U.S. durables advance modestly
Dollar/yen on track for weekly loss after BoJ policy tweak
The dollar gained against most currencies in choppy trading on Friday, tracking Treasury yields, as U.S. data showing a slowdown in the rise of one measure of inflation is not likely to prevent the Federal Reserve from keeping interest rates higher for longer.
The personal consumption expenditures (PCE) price index rose 0.1% last month after climbing 0.4% in October. In the 12 months through November, the PCE index increased 5.5% after advancing 6.1% in October.
Excluding the volatile food and energy components, the PCE price index gained 0.2% after increasing 0.3% in October. The so-called core PCE price index rose 4.7% on a year-on-year basis in November after increasing 5.0% in October. The Fed tracks the PCE price indexes for monetary policy.
Erik Bregar, director, FX & precious metals risk management at Silver Gold Bull in Toronto, said there was "no real positive surprise to the inflation data," noting that the numbers came in roughly in line with expectations.
"The data will feed the narrative that the Fed will keep rates tight for longer," he added. In midmorning trading, the dollar rose 0.5% against the yen to 133 yen JPY=EBS . The Japanese currency, though, was on track for a weekly drop of 2.7% after the Bank of Japan (BOJ) tweaked a key bond market policy earlier this week.
The euro EUR=EBS was little changed against the dollar at $1.0598. Against the Swiss franc, the dollar was up 0.1% at 0.9235 francs CHF=EBS .
A second report on Friday showed that new orders for U.S.-made capital goods rose moderately in November while shipments fell, pointing to a slowdown in business spending on equipment this quarter as higher borrowing costs cool demand for goods.
Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, rose 0.2% last month, data showed. These so-called core capital goods orders increased 0.3% in October.
However, shipments of core capital goods dipped 0.1% after increasing 1.4% in October. In what has been a brutal year for global markets, the dollar has surged almost 9% as the Fed has aggressively hiked interest rates to tame inflation, luring investors back toward the country's fixed income assets.
The dollar index, however, has dropped more than 8% since hitting a 20-year high in September, with a sharp slowdown in U.S. inflation raising hopes that the Fed may soon end its tightening cycle.
The dollar index was last up 0.1% at 104.42 =USD .
======================================================== Currency bid prices at 9:56AM (1456 GMT)Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index =USD 104.4400 104.3700 +0.09% 9.175% +104.5300 +104.1100 Euro/Dollar EUR=EBS $1.0605 $1.0600 +0.06% -6.71% +$1.0633 +$1.0587 Dollar/Yen JPY=EBS 133.0750 132.3800 +0.51% +15.58% +133.1350 +132.1700 Euro/Yen EURJPY= 141.10 140.22 +0.63% +8.27% +141.1200 +140.0800 Dollar/Swiss CHF=EBS 0.9330 0.9312 +0.20% +2.29% +0.9331 +0.9288 Sterling/Dollar GBP=D3 $1.2035 $1.2037 -0.01% -11.00% +$1.2089 +$1.2020 Dollar/Canadian CAD=D3 1.3641 1.3647 -0.03% +7.90% +1.3658 +1.3576 Aussie/Dollar AUD=D3 $0.6684 $0.6669 +0.23% -8.04% +$0.6711 +$0.6662 Euro/Swiss EURCHF= 0.9894 0.9867 +0.27% -4.58% +0.9898 +0.9866 Euro/Sterling EURGBP= 0.8809 0.8797 +0.14% +4.87% +0.8818 +0.8784 NZ NZD=D3 $0.6275 $0.6248 +0.43% -8.32% +$0.6304 +$0.6235 Dollar/DollarDollar/Norway NOK=D3 9.9060 9.8775 +0.35% +12.51% +9.9150 +9.8335 Euro/Norway EURNOK= 10.5083 10.4550 +0.51% +4.95% +10.5128 +10.4325 Dollar/Sweden SEK= 10.5204 10.4683 +0.57% +16.66% +10.5248 +10.4276 Euro/Sweden EURSEK= 11.1575 11.0944 +0.57% +9.02% +11.1595 +11.0850 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates https://tmsnrt.rs/2RBWI5E^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
