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Dollar Gains Ground as CPI Report Produces Higher Odds for a Fed Rate Hike

Source: Nasdaq

Currency & FXInflationMonetary PolicyInterest Rates & YieldsEconomic Data

The dollar index rose 0.06% Friday after a hawkish U.S. CPI report increased market-implied odds of an FOMC rate hike at the following week's meeting to 88%, from 75% the prior day. The 10-year Treasury yield rose 0.6bp, adding support for the dollar as expectations for tighter U.S. monetary policy strengthened.

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