Dollar Rises as US Inflation Data Keeps Fed Rate Hike Bets Alive
The US dollar has reached an eight-day high after data from the Commerce Department showed that inflation remains steady, keeping expectations of a Federal Reserve rate hike alive. The Personal Consumption Expenditures Price Index rose 3.7% in the 12 months through July, unchanged from June and slightly above economists' estimates.
Markets are looking to speeches by Bank of Japan deputy governor Ryozo Himino and Federal Reserve Chairman Kevin Warsh for clues on potential rate hikes. Himino's speech is expected to provide insight into the BOJ's stance on interest rates, with some analysts suggesting that similar wording used in a previous speech could signal a strong possibility of a September rate hike.
The dollar index rose 0.21% to 99.13, its highest level since August 19, while the Canadian dollar remained steady against the greenback. In cryptocurrencies, Bitcoin and Ether also saw gains, with Bitcoin rising 0.55% to $78,874.60 and Ether up 1.07% to $2,498.35.