Dollar hits 4-week high as hot US inflation lifts Fed hike bets
What's new: Traders fully priced in a December rate increase, while gold stayed near $4,044 after a nearly 3% slide.
The US dollar climbed to a four-week high Wednesday after stronger-than-expected October inflation and hawkish Federal Reserve comments pushed up expectations for another rate increase in December. The dollar index rose 0.3% to 102.53 after gaining 0.5% a day earlier, while the yen weakened toward 160 per dollar and the euro fell to $1.113. Gold edged up 0.3% to $4,043.62 an ounce after dropping nearly 3% on Tuesday, as higher rate expectations hurt demand for non-yielding bullion. CME FedWatch showed markets pricing in a 100% chance of a December hike, up sharply from before the inflation data, with some traders also seeing a small chance of a half-point move.