The dollar index is edging up near a one-week high and very close to the 100 mark on Thursday morning in Asia. The extended gridlock between US and Iran and tensions over re-opening of the Strait of Hormuz that deeply affect oil prices and thereby inflation is seen supporting the greenback. Nevertheless, data yesterday showed cooling inflation in US that reduced bets of Fed rate hike. The US Bureau of Labor Statistics reported that the headline Consumer Price Index (CPI) growth cooled down to 3.4% on year from 3.5% in June. The core CPI which excludes volatile food and energy items also arrived lower at 2.5% YoY, against the previous reading of 2.6%. Markets now shift focus on the US Producer Price Index (PPI) data for July for further clarity. The dollar index that measures the greenback against a basket of currencies is quoting at 99.87, down marginally on the day. Meanwhile the yield on the 10-year US Treasury note eased to around 4.68%.
Read more at the source
Disclaimer: The content of this post is sourced from external sites and is for informational purposes only. All rights and credits belong to the original authors and publishers.