Dollar marooned as investors shrug off inflation spike

SourceZawya
SectorFinancial Markets
CountryMiddle east

SINGAPORE – After a week of anxious waiting, markets got the high U.S. inflation number they dreaded, shrugged it off and moved on – leaving the U.S. dollar under pressure and most majors stuck in ranges.

Early in the Asia session the greenback nursed small losses, as traders figured there were enough one-offs in last month’s 0.6% rise in consumer prices to support the Federal Reserve’s insistence that inflation was likely to be transitory. The dollar bought 109.37 yen and was headed for a small weekly loss. It was also on track for modest weekly losses on the Aussie dollar and British pound, last trading at $0.7748 per Aussie and $1.4171 per pound. A dovish commitment from the European Central Bank to stick with its elevated tempo of bond buying held the euro in check at $1.2175. “What we’re seeing is a market that believes in the Fed,” said Chris Weston, head of research at broker Pepperstone in Melbourne, as...read more...