After the release of fresh inflation data in the United States, the US dollar solidified its position on the currency market. According to newly published statistics, the Consumer Price Index (CPI) rose by 0.4% over the last month, surpassing analyst expectations. On an annual basis, inflation reached 3.6%, also exceeding the projected 3.4%, reports the Baltimore Chronicle, citing Reuters.
These figures indicate persistent inflationary pressure in the US economy, which may influence future decisions by the Federal Reserve (Fed) regarding interest rates. In response to this data, the US Dollar Index (DXY), which tracks the dollar against a basket of major currencies, climbed to 99.227 points, up 0.37% from the previous level.
Amid the dollar’s strengthening, key currency pairs experienced shifts. The euro to dollar rate (EUR/USD) dropped 0.31% to 1.1352. The British pound against the dollar (GBP/USD) fell by 0.13% to 1.3547. The Japanese yen also weakened, with the USD/JPY pair rising by 0.73% to 143.88.
The dollar’s rise also impacted commodity markets. Gold prices declined by 1.89% to $3,330.36 per ounce, reflecting reduced demand for safe-haven assets. Silver fell by 1.04%, to $33.26 per ounce.
Markets now expect the Fed to maintain a tight monetary policy stance to curb inflation, which supports ongoing demand for the dollar. Investors are closely monitoring further economic indicators that could affect the central bank’s next moves.
Earlier we wrote that Kiyosaki predicts financial turmoil in the U.S.