Dollar Surges to Three-Month High on Unexpected Inflation Data

The dollar surged to its highest levels in three months against other major currencies on Wednesday following unexpected inflation data in the United States, diminishing bets on Federal Reserve interest rate cuts.

The dollar surpassed the 150 yen mark for the first time since November, prompting Japan’s chief currency official, Masato Kanda, to threaten intervention if the yen’s rapid declines persist.

Long-term US Treasury bond yields, which rose overnight, reached a new peak in two and a half months at 4.332 percent on Wednesday, influencing the dollar’s strength against the yen.

Since the beginning of the year, the dollar has appreciated by about 10 yen.

The dollar index, measuring the currency’s performance against six major currencies, rose to 104.77, near the highest level in three months reached on Tuesday at 104.96.

The euro settled at $1.0714 after hitting its lowest level in three months at $1.07005 on Tuesday.

Sterling saw no significant change, hovering around $1.25995, after a 0.3 percent decline on Tuesday. Strong UK economic data suggests a slower pace of interest rate cuts by the Bank of England compared to other major central banks.

The Australian dollar rose 0.19 percent to $0.6466, recovering from its lowest level in three months at $0.6443 on Tuesday.

Bitcoin rebounded from approximately $48,325 to $49,580 by the end of Tuesday’s trading session after a brief decline from around $50,000.