The price of the greenback surged in the Asian market on Thursday morning. The US dollar touched its peak of 2021 against the pound sterling and the euro. However, the yen took a dump after the US inflation spiked to its highest level. It even fanned bets on the hike of interest rate.
The US dollar index edged up to 94.905, rising by 0.07 per cent at 4:50 AM GMT (11:50 PM ET). Meanwhile, the USD/JPY pair edged up to 113.98, hiking 0.07 per cent.
The AUD/USD pair inched down to 0.7298 by 0.38 per cent, while the NZD/USD pair slipped to 0.7038 by 0.28 per cent.
The USD/CNY pair rose to 6.4055 by 0.27 per cent. The GBP/USD pair edged down to 1.3405 by 0.03 per cent. Later in the day, the United Kingdom will release its growth data, including GDPs for the third quarter.
The euro plunged to USD 1.1476 by 1 per cent. It was the lowest performance since July 2020. It happened, post the inflation data released by the US on Wednesday. The data showcased that the CPI (consumer price index) grew 6.2 per cent year-on-year. And on month-on-month, it surged 0.9 per cent.
The core CPI increased by 4.6 per cent on a year-on-year basis, 0.6 per cent on a month-on-month basis.
Meanwhile, the US Treasury yields also witnessed a surge.
Interestingly, these rates make a move during the short end, and suggest traders believe that the US Federal Reserve would initiate a step to raise interest rates when the price runs higher, said Ray Attrill, head of FX strategy, National Australia Bank.