Dollar sellers hit pause for US inflation data

Business Recorder reported that the US dollar steadied in Asian trading on Tuesday as currency markets awaited October inflation figures from the United States. Economists expect annual headline inflation of 3.9% and core inflation of 2.8%; a higher reading could strengthen expectations of further Federal Reserve rate increases. The dollar had slipped earlier after oil prices fell and global stocks gained, encouraging a move towards riskier assets.

A stronger-than-expected US jobs report on Friday, with hiring more than double forecasts, has led markets to price an 85% chance of a rate increase next month. Investors have also priced in two US rate rises by the middle of next year, while the Japanese yen traded at 157.97 per dollar. Japan said it had used $97 billion of reserves to support the yen in late July and August, and the possibility of further intervention has helped keep the currency steady.