The Dollar Rises Ahead of Inflation Data

The dollar edged higher ahead of U.S. inflation data, while cryptocurrencies remained under pressure following the cancellation of Binance’s plans.

The currency rose against its peers on Wednesday but lost some gains as investors digested the results of the U.S. midterm elections.

The dollar index measures the currency’s performance against other major currencies. It was up 0.111% to 110.478.

All eyes were on U.S. inflation figures due later Thursday, which could significantly impact the scale of future interest rate hikes by the U.S. Federal Reserve.

The euro fell below parity, closing 0.18% lower at $0.9992. Sterling gained 0.32% to $1.1396, reversing a 1.6% decline in the previous session.

The dollar has lost strength recently on expectations that the Fed will begin to lift it slightly in early December.

On Thursday, the Japanese yen rose to 146.212 per dollar. It reached a two-week high of 145.118 the previous session before giving up its gains.

Japan is seeing success in its fight against speculators targeting the weakened yen and the central bank’s tight grip on yields, but more challenges lie ahead. The yen had retained a large portion of its gains following Japan’s record $43 billion spent last month when the currency was on the verge of breaking through 152. Since then, it has survived another dovish decision by the Bank of Japan and another large rate hike by the Federal Reserve, both of which speculators had previously used as an excuse to sell the currency.

BTC, AUD, and NZD

Bitcoin increased by 5% to $16,690 after falling below $16,000 for the first time since late 2020, the previous session. This year, it has dropped by more than 60%. The Australian dollar fell 0.26% to $0.6414, while the New Zealand dollar fell 0.23% to $0.587. In Wednesday trading, both had dropped more than 1%.