Dollar Rises Slightly Ahead of US Inflation Data

The dollar rose slightly against the major currencies on Wednesday after falling in the past three days, as investors are reluctant to take risks ahead of US inflation data that may shed some light on when the Federal Reserve may raise interest rates.

Economists polled by Reuters expect CPI data due later to show prices rising at an annual rate of 4.3 percent, compared to the Federal Reserve’s target level of 2 percent.

The Federal Reserve confirmed last week its belief that the current high inflation is temporary, but many investors fear that playing down the price hike could lead to a costly policy error.

The dollar index rose 0.19 percent to 94.146 points, after falling from its highest level in more than a year of 94.634 recorded on Friday.

The dollar rose against the Japanese yen 0.18 percent to 113.080 yen per dollar. The euro fell 0.23 percent to $1.1569. The price of the pound sterling fell 0.18% to $1.3535. The Australian dollar fell briefly to $0.73525, but gradually compensated for its losses, falling by 0.07 percent.

The bitcoin has hovered near its all-time high of $68,564.40 hit on Tuesday. The latest circulation was recorded at $66,670.

Ether was trading at $4,715.30, not far from its record high of $4,842.65 on Tuesday.