Dollar retreats from 18-month high as Fed officials temper rate-hike bets
The dollar index has given back most of the gains it made after Wednesday's hot inflation reading.
The US dollar softened from an 18-month peak on Thursday, despite inflation data that came in hotter than expected. Federal Reserve officials' measured remarks and a retreat in Treasury yields prompted traders to lower expectations of a rate increase in October. Against the dollar, the euro rose 0.3% to trade at US$1.1187, while the British pound strengthened 0.2% to US$1.3224.
The dollar index, which tracks the US currency against a basket of other currencies, slipped 0.1% to 102.06, giving back much of the gains it made following Wednesday's inflation report. Core consumer price index figures released by the US Labor Department showed a 0.3% increase in September, surpassing forecasts of a 0.2% rise.
The annual inflation rate also rose to 2.6%, above the 2.5% estimate. Market expectations for a Fed rate hike in October rose to 50%, but comments from Fed officials suggested the central bank could wait for clearer data before acting, causing traders to adjust their rate hike expectations.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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