Tags: dollar | inflation | market | currency

Dollar Gains as Cost of Living in US Unexpectedly Rises

Wednesday, 22 Oct 2014 09:52 AM

The dollar gained against major peers for a second day as the cost of living in the U.S. unexpectedly rose in September.

The greenback strengthened against the euro and yen as the consumer-price index climbed 0.1 percent after decreasing 0.2 percent in August, a Labor Department report showed in Washington. A Bloomberg survey called for no change. The euro fell against most major peers as investors weighed the prospects of additional easing policies from the European Central Bank. The pound slid as minutes of the Bank of England’s most recent meeting showed most policy makers saw greater risks to the U.K. from a euro-area slump.

“It’s nice we didn’t have another flat number. The concern last week was on the threat of global slowdown,” Matt Derr, a foreign-exchange strategist at Credit Suisse Group AG, said by phone from New York. “We’re still waiting for the right moment to buy dollar again. The decline could run a little bit further.”

The Bloomberg Dollar Spot Index, which measures the currency against a basket of 10 major counterparts, rose 0.3 percent to 1,067.51 as of 9:06 a.m. New York time.

The U.S. currency advanced as the so-called core inflation measure, which excluded volatile food and fuel, also advanced 0.1 percent after being little-changed in August.

The dollar index lost 1.4 percent in the past two weeks as traders pushed back expectations for U.S. interest-rate increases on concern global economic growth is faltering.

Futures showed bets on an October 2015 increase at 49 percent, down from 85 percent at the end of last month.

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The dollar gained against major peers for a second day as the cost of living in the U.S. unexpectedly rose in September.
dollar, inflation, market, currency
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2014-52-22
Wednesday, 22 Oct 2014 09:52 AM
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