Dollar Climbs to Eight-Day High Amid US Inflation Data and BOJ Rate Hike Speculation
The US dollar has reached an eight-day high following the release of US inflation data. The Personal Consumption Expenditures Price Index increased 3.7% in the 12 months through July, unchanged from June and slightly above the estimated 3.6%. This development has kept the market's expectation for a Federal Reserve rate hike by year-end alive.
A speech and press conference by Bank of Japan deputy governor Ryozo Himino on Thursday will provide clues on the likelihood of a September rate hike and any tightening path thereafter.
Markets are watching Himino's speech closely, as he used similar wording in a previous speech before a January 2025 rate hike. If he uses similar language this time, it could signal a strong possibility of a rate hike at the September meeting.