Dollar price surges, nears 16-month high

Dollar price surges, nears 16-month high

The dollar price surged in Asia during early trades on Friday. It is now reaching for the best week in the past 6 months. On the other hand, investors are betting that inflation, which will be more than expected will push central banks to raise interest rates swiftly than expected. 

The US dollar index soared to 95.237 by 0.07 per cent at 4:41 AM GMT (23:41 PM ET). It remained slightly below 16-month high record of 95.267

The USD/JPY pair hiked to 114.25 by 0.18 per cent. The AUD/USD pair edged down 0.10 per cent to 0.7287 and the NZD/USD pair inched down to 0.7003 by 0.23 per cent. 

The USD/CNY pair inched up to 6.3965 and the GBP/USD pair edged down to 1.3363 by 0.06 per cent. 

As per the data released on Wednesday regarding the inflation showcased the CPI (consumer price index) grew 6.2 per cent year-on-year and 0.9 per cent month-on-month during October. Meanwhile, the core CPI soared 4.6 per cent year-on-year, while 0.6 per cent month-on-month. 

Interestingly, investors are putting up bets on the condition that the US Federal Reserve would raise interest rates earlier than expected. Notably, investors are anticipating the first rate surge by July 2022. 

On the other data front, Michigan Consumer Expectations indexes and the University of Michigan Consumer Sentiment for November are due in the day.

Moreover, the data is inclusive of the JOLTs Job Openings index for the month of September.

John Williams, New York Fed President will address an online conference, that could offer ideas to the Fed’s reaction regarding high inflation. 

In a separate event, Philip Lane, chief economist of European Central Bank will also address a panel. 

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