HomeNewsNewsRate hike bets keep U.S. dollar bid

Rate hike bets keep U.S. dollar bid

U.S. dollar banknotes.

Liu Jie | Xinhua | Getty

The dollar was firm in Asia on Friday after hotter-than-expected U.S. inflation and hawkish comments from a Federal Reserve official unleashed a wave of bets on aggressive rate hikes, though similar pressures worldwide kept a lid on gains.

Thursday data showed U.S. consumer prices up 7.5% year-on-year in January, a fourth straight month above 6% and slightly higher than economists’ forecasts for a 7.3% rise.

After that, St. Louis Fed President James Bullard told Bloomberg he’d like to see 100 basis points of hikes by July.

Treasury yields leapt and the dollar jumped to a five-week high of 116.34 yen during volatile overnight trade.

The greenback oscillated against other currencies before turning broadly firmer early in the Asia session. The euro was last down 0.2% at $1.1400 and the Australian and New Zealand dollars each dropped about 0.3% in morning trade.

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