The US dollar is trading mixed against its major counterparts today, but the US dollar index is higher. The latest inflation numbers are in, and it looks as though prices are rising at a fairly rapid pace.
Inflation numbers reported today show that CPI was flat month over month, but on a year over year basis, there has been some growth. Main CPI is up 1.4 per cent over the past 12 months, while core prices (excludes gasoline and food) are up 2.2 per cent. These year over year increases represent some of the most dramatic growth in years.
As a result, speculation that another rate hike might come in 2016 after all is underway and the dollar index is on the rise. Some think that if inflation keeps growing at this rate, the Federal Reserve will have no choice but to raise rates to get a handle on the situation. Against its counterparts the US dollar is trading mixed, but against a basket of currencies, it’s higher.
At 14:58 GMT the US dollar index is up to 96.997 from the open at 96.787. EUR/USD is barely higher, up to 1.1099 from the open at 1.1098. GBP/USD is down to 1.4264 from the open at 1.4331. USD/JPY is down to 112.9450 from the open at 113.2170.
If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.