A gauge of the U.S. dollar was 0.2 percent from a four-week high before data tomorrow economists say will show consumer-price inflation held at the fastest since October 2012, boosting the case for higher interest rates.
The U.S. currency has risen versus all except one of its Group-of-10 peers this month as traders boosted bets the Federal Reserve will increase its benchmark from near zero by the middle of 2015. The New Zealand dollar rose for a second day on speculation the central bank will raise borrowing costs this week. Indonesia’s rupiah gained a fourth day as the election commission said it may release the results of this month’s election early. Japanese markets are shut today for a holiday.
“A stronger CPI number would boost the U.S. dollar and we’re seeing that data begin to edge up,” said Tim Kelleher, head of institutional foreign-exchange sales at ASB Bank Ltd. in Auckland. “That’s the biggest risk for the start of the week.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.