Investing.com - The dollar was supported against a basket of
other major currencies on Wednesday as stronger than expected U.S.
inflation data boosted expectations for a more hawkish stance on
interest rates from the Federal Reserve.
USD/JPY edged up 0.08% to 102.22, from 102.13 late Tuesday.
The dollar strengthened after the Labor Department said Tuesday
that U.S. consumer prices rose 0.4% in May from a month earlier,
bringing the annual rate of inflation to 2.1%. It was the fastest
monthly increase in inflation in more than a year, beating
forecasts of 0.2%.
The uptick in inflation indicated that the economic recovery is
deepening and boosted expectations for a more hawkish stance on
interest rates from the Fed.
Investors were looking ahead to the bank's post-policy meeting
press conference with Chair Janet Yellen later Wednesday, as they
awaited fresh indications on the timing of possible interest rate
The Fed was expected to cut its asset purchase program by
another $10 billion, but is not expected to raise borrowing costs
GBP/USD was steady at 1.6968, off the five year peak of 1.7011
set on Monday. Investors were awaiting the minutes of the Bank of
England's June meeting, due out later in the session, for signs
that the monetary policy committee is moving closer to hiking
EUR/USD was little changed at 1.3544, holding above the four
month trough of 1.3502 struck earlier this month, while USD/CHF was
trading at 0.8991.
The Australian dollar was steady, with AUD/USD at 0.9338, while
NZD/USD edged up to 0.8668 and USD/CAD was at 1.0866.
The US Dollar Index, which tracks the performance of the
greenback versus a basket of six other major currencies, was flat
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