The dollar is strong this morning, climbing to 2021 highs against a basket of currencies. This is due to US inflation figures, which were released yesterday.
Consumer prices data showed that prices grew at their fastest annual pace since 1990 in October. Core inflation rate figure grew by 4.6% annually, whilst overall inflation surged to 6.2% in October, above forecasts of 5.8%.
This has increased expectations that the Federal Reserve could raise interest rates sooner than expected, causing the dollar to strengthen. Rising treasury yields also supported the greenback.
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