US Dollar nears weekly high on inflation and rate bets
The dollar index remains steady near 98.325 as a 3.8 percent increase in consumer prices drives Treasury yields to seven-week highs. Markets are pricing in a 35 percent chance of a December rate hike while geopolitical tensions in the Middle East keep oil prices elevated near 107 dollars per barrel.
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The United States dollar held near a one-week high after the U.S. consumer price index rose 3.8% through April, the largest year-on-year increase since May 2023. Energy costs, driven by the U.S.-Israeli war on Iran, pushed prices higher. Investors are now pricing in a 35% chance of a December rate hike as inflation remains sticky.
