Dollar rises 0.47% against Swiss franc after CPI prints annual inflation at 3.4%
U.S. core inflation eased to 2.4% while monthly consumer prices surged 0.4%, prompting a market price increase for the Federal Reserve rate hike meeting.
The U.S. dollar rose against the euro and Swiss franc after the Bureau of Labor Statistics released August Consumer Price Index data showing a 0.4% increase in consumer prices year-on-year inflation at 3.4%. Core CPI, excluding food and energy, climbed to 2.4%, accelerating from 2.5% in July. Investors interpreted the accelerating monthly growth as evidence that the Federal Reserve will raise interest rates next week. The probability of a 25 basis-point increase moved to 86% on Friday compared with 72% the day before. Market volatility affected asset prices, with Bitcoin reaching $79,000 and the S&P 500 closing up 1%. Juan Perez of MonexUSA noted that core CPI acceleration increases the odds of a rate hike. Conversely, oil prices rose due to tensions involving Iran, which limited the dollar's advance against peers.
