Dollar Surges to Eight-Day High on Strong US Economic Data

The US dollar has reached an eight-day high after recent economic data showed a slight increase in inflation, leading to speculation that the Federal Reserve may raise interest rates. The Personal Consumption Expenditures (PCE) price index rose 3.7% in the 12 months through July, exceeding economists' expectations of 3.6%. This development has pushed the US dollar index up 0.21% to 99.13, its highest level since August 19.

The yen has lost ground against the dollar, trading at 159.23 after authorities intervened to support it. However, it remains above its multi-decade low of around 164 per dollar. Meanwhile, Bitcoin and Ether have seen minor gains, with Bitcoin rising 0.55% to $78,874.60 and Ether gaining 1.07% to $2,498.35.

The market is now waiting for a speech by Ryuzo Himino, deputy governor of the Bank of Japan, which may shed light on the likelihood of an interest-rate hike in September and further monetary tightening.