Dollar Hits Two-Month High Amid Ongoing Global Price Pressures
The US dollar held near a two-month high on Thursday, supported by an extended rise in US Treasury yields. The yield increase was partly driven by concerns over persistent global price pressures stemming from the Middle East war. Data showing US inflation rose less than expected in August reduced expectations for a Federal Reserve rate hike this month.
A surge in euro zone inflation underscores the threat that higher energy prices continue to pose to the global economy. The dollar was perched near a two-month high against a basket of currencies, with a value of 101.48 at the end of the Asian session.
According to Ray Attrill, head of FX strategy at National Australia Bank, 'There's a little bit of comfort to be drawn from the (US PCE) numbers... I think the market's been right to moderate somewhat its expectations for a back-to-back Fed hike... but I don't think it necessarily means there aren't still more Fed hikes ahead.'