Dollar Weakens Ahead of US CPI Data and Fed Speeches
· Business · Economic Times, Bloomberg
The US dollar declined on Wednesday as traders awaited new information on the timing of interest rate increases, weakening from an 18-month high. The greenback edged 0.02% lower to 102.16 on the dollar index, following a 0.35% slide on Tuesday, after oil prices eased and investors reassessed the AI-fueled rally that had supported demand for US assets. The euro rose 0.04% to $1.1203 amid regional budget concerns in France keeping bond yields elevated, while the yen was little changed at 158.32 per dollar and sterling gained 0.03% to $1.3256. Attention now focuses on the upcoming release of US consumer price index data for September, expected to show a 0.6% month-on-month increase after 0.4% in August, with annual inflation seen accelerating to 3.6% from 3.4%. Federal Reserve officials, including New York Fed President John Williams, are due to deliver speeches that could clarify the outlook for interest rates, with Williams stating he still expects one more rate hike this year but sees
Why it matters
The dollar's movement affects global trade and commodity prices, directly impacting Indian importers and exporters who deal in USD-denominated contracts. Investors in Indian markets holding foreign currency assets or tracking global risk sentiment may see portfolio volatility as CPI data and Fed signals shape expectations for US monetary policy.
Read the original report — Economic Times
Join us on Telegram
Breaking news the moment it lands. At 10,000 members we ship the Android app.