Home / Economic Report / Daily Economic Reports / Dollar jumps ahead of US inflation data and digital currencies falter

Dollar jumps ahead of US inflation data and digital currencies falter

The dollar rose ahead of US inflation data later on Thursday, while cryptocurrencies remained under pressure after crypto exchange Binance withdrew its plans to rescue struggling rival FTX.

The dollar is heading towards recording strong gains for the second day in a row, while investors evaluate the results of the US midterm elections.

By 1105 GMT, the dollar index rose 0.56 percent to 110.96.

Most eyes are on US inflation data due to be released later on Thursday, which will likely influence the size of US interest rate hike in the future.

The euro fell and recorded in its latest trading, a decline of 0.71 percent to $ 0.9938. Sterling rose 0.11 percent to $1.1373, after declining 1.6 percent in the previous session.

The dollar has gained more than 16 percent this year, but has lost some momentum in the past two weeks on hopes that the Federal Reserve (the US central bank) could return to raising interest rates at lower levels by December.

The Japanese yen fell 0.11 percent to 146.54 against the dollar. It hit a two-week high of 145.18 in the previous session before giving up gains.

Analysts said that a crisis in cryptocurrencies is also negatively affecting investor sentiment. Binance announced on Wednesday it was backing off a rescue deal with rival FTX, leaving FTX CEO Sam Bankman-Fried struggling to explore all options as his company was on the brink of collapse.

Bitcoin rose 2 percent to $ 16,264 after falling in the previous session to less than $ 16,000 for the first time since the end of 2020. The currency has plunged more than 60 percent this year.

The Australian dollar fell 0.58 percent to $0.6394, while the New Zealand dollar fell 0.48 percent to $0.5855. Both fell more than 1% in Wednesday’s trading.

Check Also

EUR/GBP Remains Range-Bound Amid Mixed Signals

The EUR/GBP pair has been consolidating in a narrow trading range for the past week, …