US DOLLAR FIRMS UP AS US INFLATION STAYS STICKY REDUCING BETS OF OUTSIZED FED RATE CUT

Published on Sep 12, 2024 11:55

The US dollar reduced some of its early day gains on Thursday although the index continues to stay firmly above 101 mark after the release of US CPI inflation report. Data yesterday showed consumer prices increased in line with estimates although core consumer prices rose by slightly more than expected, reducing bets of a higher interest rate cut by Fed, bolstering the greenback. The Labor Department said its consumer price index rose by 0.2 percent in August, matching the uptick seen in July as well as economist estimates. Meanwhile, core consumer prices, which exclude food and energy prices, climbed by 0.3 percent in August after rising by 0.2 percent in July. The yield on the benchmark ten-year note, which moves opposite of its price, crept up by less than a basis point to 3.66 percent while the dollar index is at 101.36, marginally up on the day.