Shine Trader Limited-Live reports：
Tokyo (Reuters) – the dollar hit its lowest point of the week against major currencies on Thursday, taking a breather from its rise to a one-year high due to the Fed’s expectation of accelerating interest rate hikes.
The dollar index, which measures the dollar against six currencies, was flat at 94.016, falling 0.53% on Wednesday, the largest since August 23.
The index reached 94.563 on Tuesday, the highest level since late September 2020, and has soared nearly 3% since the beginning of last month.
Even after the minutes of the September meeting of the Federal Open Market Committee confirmed that stimulus cuts would almost certainly begin this year, the dollar fell, indicating that more and more policymakers are worried that high inflation may continue.
A report from the labor department shows that US consumer prices rose steadily in September and may rise further in the event of soaring energy prices, which may force the Federal Reserve to take action as soon as possible to normalize its policy.
The five-year and five-year forward breakeven inflation rate in the United States is one of the more closely watched long-term inflation expectations, soaring overnight to a seven-year high of 2.59%.
So far, most Fed officials, including Chairman Jerome Powell, believe that price pressure will be temporary.
At present, the possibility of raising interest rates by 25 basis points for the first time in July is about 50 / 50.
“The reaction of the dollar may be an example of ‘buying rumors, selling facts’,” Joseph kapelso, strategist at the Commonwealth Bank of Australia, wrote in a customer report.
“We believe that the FOMC’s assumption of a temporary surge in inflation is wrong. In our view, a more aggressive tightening cycle will support the dollar.”
The dollar edged up 0.11% against the yen to 113.37 yen, but fell from a three-year high of 113.80 yen hit overnight.
The euro was basically flat at $1.1599 against the dollar on Wednesday, but earlier hit $1.1601 for the first time since October 5.
The pound barely changed to $1.3665, holding on to Wednesday’s 0.55% increase and approaching its highest level this month.
Bitcoin rose slightly, reaching a five-month high of $58300.
Reprint indicated source：Shine Trader Limited Live information