Dollar Hits Eight-Day High as Fed Hike Bets Rise Amid Economic Data
The US dollar reached an eight-day high on Thursday due to updated economic data that slightly increased expectations of a Federal Reserve rate hike. Markets are awaiting a speech and press conference by Bank of Japan deputy governor Ryozo Himino for clues on potential future rate hikes.
The Personal Consumption Expenditures Price Index rose 3.7% in the 12 months through July, matching June's reading and exceeding economists' 3.6% estimate. This kept the market's expectation for a Fed rate hike by year-end alive, although Chairman Kevin Warsh's upcoming speech at Jackson Hole will be the ultimate test.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.21% to 99.13. The Canadian dollar held steady versus the US dollar at C$1.388 per dollar, while the Australian dollar strengthened 0.18% to $0.7181.