Dollar Edges Higher; Fed in Spotlight on Inflation Surge By Investing.com – Investing.com

  • Date: 13-May-2021
  • Source: Investing.com
  • Sector:Economy
  • Country:Gulf
  • Who else needs to know?

Dollar Edges Higher; Fed in Spotlight on Inflation Surge By Investing.com – Investing.com

© Reuters

By Peter Nurse



Investing.com - The dollar edged higher in early European trade Thursday, with the safe haven currency supported by concerns of an earlier than expected Federal Reserve response to inflationary pressures in the wake of worryingly large jump in U.S. consumer prices.



At 2 AM ET (0700 GMT), the , which tracks the greenback against a basket of six other currencies, was up 0.1% at 90.775, around its highest level in a week. 



traded 0.1% higher at 1.2075, after dropping around 0.6% the previous session, was flat at 1.4052, and was up 0.1% at 109.73, close to its strongest level in five weeks. fell 0.2% to 0.7712, while rose 0.1% to 0.7160, benefiting from further plans to open the New Zealand economy.



The main driver of these dollar gains has been the surge in U.S. inflation, and the concern this will force the Fed to move away from its ultra-easy monetary policies sooner than its current guidance suggests.



The rose 4.2% in April from a year ago, according to data released on Wednesday, well above consensus forecasts for 3.6% and climbing to its highest rate since the eve of