Dollar Loses Ground Against Other Currencies Following Inflation Data

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Dollar Loses Ground Against Other Currencies Following Inflation Data
Credit: © Reuters.

By Sam Boughedda

Investing.com — The dollar slide continued Wednesday following consumer price index data that showed a continued rise in prices, increasing market expectations for a potential rate hike. 

The inflation rate for September was reported at 0.4%, coming in above the expected 0.3% figure. The year-on-year inflation rate rose to 5.4%, again beating expectations of 5.3%.

The news has seen the dollar weaken against all of the other major currencies on Wednesday, with the dollar index , which measures the currency against a basket of foreign currencies, falling over 0.4% and moving lower from the 13-month high it posted earlier this week.

At the time of writing, the major FX pairs show the AUD/USD , which is closely linked to commodities, trading 0.37% above Tuesday's close. XAU/USD has climbed close to 2%.

The GBP/USD has posted a 0.44% gain, despite issues surrounding Brexit and the Northern Ireland protocol.

The euro is up over 0.5% against the greenback, retracing significantly since it fell to 15-month lows. 

Elsewhere, the USD/CAD is down 0.18%, the USD/CHF is down 0.58%, the USD/JPY is down 0.16% and the NZD/USD is up 0.45%. Despite the minutes of the Federal Reserve's recent meeting showing the central bank could taper bond purchases in mid-November or mid-December, we have yet to see a strong reaction in the dollar crosses.

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  • arpit lahoty @arpit lahoty
    what are the impact on gold tommorow
    Like 0

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