Dollar Struggles as Softer Inflation Dims Fed Hike Bets
Traders cut bets on a July Federal Reserve hike after June consumer inflation rose 3.5% year on year, the Labor Department said.
- On Tuesday, the dollar slid as slowing US inflation dented market expectations for an interest rate hike from the Federal Reserve later this month.
- President Donald Trump reversed course on proposed shipping levies near the Strait of Hormuz, cooling oil prices that had initially sparked fears of renewed inflation.
- The Labor Department reported June CPI rose 3.5 percent year-on-year, down from 4.2 percent in May, reducing rate-hike odds from roughly 40 percent to 13 percent.
- JPMorgan Chase reported a record $21.2 billion quarterly profit, while the PHLX semiconductor index rose more than three percent as tech firms found reprieve.
- The market still narrowly prices in a potential Fed rate hike during the central bank's following meeting in September, reflecting lingering caution on inflation.
16 Articles
16 Articles
Channel News Asia
Dollar struggles as softer inflation dims Fed hike bets
HONG KONG, July 15 : The dollar extended its weakness on Wednesday after tumbling from a two-week high, as softer-than-expected inflation data curbed bets on a near-term Federal Reserve rate hike, despite concerns that elevated oil prices could fuel inflation risks. Against the yen, the dollar fetched 162.08,
Radio France Internationale
Dollar slides as rate hike prospects ease, oil gains moderate
Oil prices had jumped sharply on fresh Iran-US strikes, with two ships struck overnight near the Strait of Hormuz. But those gains faded during the day, with US President Donald Trump reversing course on plans to impose a 20-percent levy on ships transiting the key waterway. The spike in oil prices over recent days had renewed concerns about renewed inflation and the need for the US Federal Reserve to hike interest rates. But the latest data sh…
Fuelling fears: Nasdaq rebounds as cooling US inflation weighs on dollar
The weight was appreciated in a market that reacted to below-anticipated U.S. inflation figures, which moderated Fed rate hike bets.
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