Dollar firm after inflation data douse bets for big Fed cut
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The dollar traded near a four-week high against the euro on September 12, 2024, following U.S. inflation data that suggested the Federal Reserve would likely avoid a significant interest rate cut next week. The U.S. consumer price index (CPI) rose 0.2% in August, with core CPI increasing by 0.3%. Traders reduced the probability of a 50-basis point rate cut on September 18 to 15%, while a 25-basis point cut remains at 85%. The European Central Bank is expected to announce a quarter-point rate reduction on the same day. The dollar rose 0.13% to 142.55 yen, recovering from a low of 140.71 yen earlier in the week. Bank of Japan board members indicated a tightening bias, contributing to yen volatility. U.S. Treasury yields increased after hitting a 15-month low, impacting currency movements.

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https://www.nst.com.my/business/economy/2024/09/1104720/dollar-firm-after-inflation-data-douse-bets-big-fed-cut nostr.fmt.wiz.biz