Dollar Whipsaws Around 100 Level as Fed Rate Hike Expectations Cool
The dollar index continues to fluctuate around the 100 level as inflationary pressures in the US ease, leading to reduced expectations for a Federal Reserve rate hike in September.
According to the latest data from the U.S. Labor Department, the July Consumer Price Index (CPI) rose 3.4% year-over-year, down from 3.5% in June, while core CPI slowed to 2.5% from 2.6%, both figures aligning with market expectations.
The dollar index climbed to an intraday high of 100.08 on Wednesday before stabilizing above 99.9, reflecting the ongoing tug-of-war between bulls and bears.
The Taiwan dollar, driven by sustained foreign capital inflows into Taiwan equities, briefly broke through the 32.2 level against the US dollar in early trading, touching an intraday high of 32.161 - its strongest since July 17.