Dollar Rises to Eight-Day High as Inflation Data Fuels Fed Hike Bets

The US dollar rose to its strongest level in eight sessions on Thursday, August 27th, as inflation data reinforced bets for a Federal Reserve interest-rate increase.

The Personal Consumption Expenditures Price Index climbed 3.7% year-over-year in July, matching June's pace and exceeding the consensus forecast of 3.6%, according to Reuters poll of economists.

Market expectations now assign an 87% probability to a Bank of Japan rate increase next month, based on figures from brokerage Totan Tanshi.

The dollar index gained 0.21% to 99.13, with the greenback trading at 159.23 against the yen, though it still remains far from its multi-decade trough near 164.