Dollar gains traction as Fed speakers warn of risks from inflation

The US dollar remained close to a two-week peak in Asian trading on Wednesday after October inflation came in stronger than forecast and Federal Reserve officials signalled concern about price pressures. Business Recorder reported that the dollar index stood at 102.22, following a 0.5% rise on Tuesday, and was approaching its strongest level since October 28.

Interest-rate futures put the probability of a 25-basis-point increase at the Fed’s December meeting at 91.9%, up from 84% a day earlier, while traders assigned a 9.1% chance to a 50-basis-point move. The US 10-year Treasury yield rose 13.8 basis points to 4.996%; the euro and pound were little changed, while bitcoin and ether edged lower near three-month lows.

The figures reflect a stronger market expectation of tighter US monetary policy, which can affect currency and bond-market conditions watched by investors. For Pakistani market readers, the report is relevant as a global currency-market development, but it does not identify any PSX-listed company.