News about the US dollar rate index: In the morning in Asia, the US rate index, which compares the US currency to six of its key rivals, was trading at 106.49.
News about the US dollar index: Stayed strong on Friday, exerting pressure on a basket of currencies as higher-than-anticipated US consumer inflation rekindled expectations that the Federal Reserve will need to maintain higher rates for longer. A rise in rental rates in September drove up consumer prices in the US, statistics released on Thursday revealed. Despite predictions that the Fed would hold off on raising interest rates next month, underlying inflation pressures have been steadily moderating.
According to David Doyle, head of economics at Macquarie, “CPI data for September reveal further challenges with the ‘last mile’ in pushing inflation persistently back towards the 2% target.” The dollar index, which compares the US dollar to six other major currencies, was at 106.49 in the morning Asian time. The yen was last trading at 149.75 to the dollar due to the overnight strength, which sent the Japanese currency back toward the delicate 150-line briefly hit last week.
Investors would welcome indications that the data has enough room to support additional fiscal stimulus, according to Kyle Rodda, senior financial market analyst at Capital.com, in a report. “Given the shift in wording from China’s central government concerning more significant fiscal stimulus…
Prior to the release of the data, the offshore Chinese yuan’s exchange rate to the dollar was $7.3075. The kiwi declined to $0.59275, while the Australian dollar, which frequently serves as a proxy for China’s economic expansion, was at $0.6321. In other news, the euro edged up about 0.1% to $1.0536 after falling against the dollar overnight. The most recent price of sterling was $1.21885.
