Dollar Strengthens on Fed Rate Hike Expectations After US CPI Jumps 0.4%
MacroDigital Finance
The US dollar strengthened against major currencies in New York foreign exchange trading on Friday, September 11, after US inflation data signaled that consumer prices are still rising and reinforced expectations that the Fed will raise interest rates at next week's meeting. The dollar index rose 0.07% to 99.122, with the dollar strengthening to 0.8166 Swiss francs from 0.8129 Swiss francs and to 1.3865 Canadian dollars from 1.383 Canadian dollars, but the US dollar weakened to 153.72 yen from 154.32 yen, while the euro weakened to 1.1596 dollars from 1.1613 dollars and the British pound strengthened to 1.3525 dollars from 1.3513 dollars. The US Labor Department said the consumer price index, or CPI, rose 0.4% in August after rising 0.1% in July, while core CPI rose 2.4% in August from a year earlier after rising 2.5% in July. The market estimates about an 86% chance that the Fed will raise interest rates by 0.25% at its September 15-16 meeting, up from about 72% the previous day, according to data from CME's FedWatch tool.
