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Dollar index holds well above 98 mark as US CPI data spurs hawkish sentiment

(13-May-26   12:04)

The dollar index is stabilizing well above 98 mark following a sharp spike in the previous session after US data revealed hotter-than-expected US inflation that reduced expectations for Federal Reserve interest rate cuts. Data released by the Bureau of Labor Statistics on Tuesday showed that the US Consumer Price Index (CPI) climbed 3.8% on year in April, compared to 3.3% in March. This figure came in hotter than the expectation of 3.7% and registered the highest since May 2023. The greenback also gains on the back of uncertainty surrounding geopolitical tensions between US and Iran. The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is staying steady after two days of gains and trading around 98.26. Investors are now focused on the latest producer inflation report for further signals on how the Middle East war is affecting the US economy.

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