The US dollar rose during trading on Wednesday, maintaining its gains for the second day in a row, approaching the highest level in six months, as demand remains strong for the currency as the best available investment, especially in light of the rise in global prices, and renewed fears about prolonging the battle. Federal Reserve with high inflation continuing so far.
Inflation data released recently in the United States showed that inflationary pressures still remain on US monetary policy makers, and enhance the possibilities of an additional increase in federal interest rates before the end of this year.
US dollar index
The dollar index rose by approximately 0.4% to the level of 104.97 points, from the opening level of today’s trading at 104.57 points, and recorded the lowest level at 104.51 points.
The index ended Tuesday’s trading with an increase of less than 0.1%, resuming its gains that stopped the previous day as part of correction operations from the highest level in six months at 105.15 points.
US inflation data
The overall consumer price index in the annual reading recorded an increase of 3.7% in August, exceeding market expectations for a 3.6% increase, and the index recorded an increase of 3.2% in July.
The annual rise in consumer prices in the United States exceeds expectations in August
The annual core CPI recorded an increase of 4.3% in August, according to market expectations of a 4.3% increase, and the index recorded an increase of 4.7% in July.
The overall monthly consumer price index recorded an increase of 0.6% in August, according to market expectations of a 0.6% increase, and the index recorded an increase of 0.2% in July.
Consumer prices rose monthly in the United States according to expectations in August
The monthly core consumer price index recorded an increase of 0.3% in August, higher than market expectations of a 0.2% increase, and the index recorded an increase of 0.2% in July.
Federal Reserve
These data show that prices in total value have begun to accelerate again, and the core reading is still far from the Federal Reserve’s medium-term target of 2%, which means continued inflationary pressures on US monetary policy makers.
These data enhance the chances that the Reserve Board will raise interest rates by about 25 basis points during the next November 1 meeting, pending the arrival of inflation data during the coming period.