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Hot U.S. inflation drives dollar to 2021 peaks

Mount Equity Group Tokyo, Japan > News > Markets > Hot U.S. inflation drives dollar to 2021 peaks

A packet of U.S. five-dollar bills is inspected at the Bureau of Engraving and Printing in Washington March 26, 2015. REUTERS/Gary Cameron//File Photo/File Photo

SYDNEY, Nov 11 (Reuters) – The dollar stood at its highest levels of the year against sterling and the euro on Thursday, while the yen was smarting from its sharpest drubbing in a month, after the hottest U.S. inflation reading in a generation fanned bets on rate hikes.

The euro was pummelled down 1% and through major support to $1.1476, its lowest since July 2020, after headline U.S. CPI came in at 6.2% overnight. It was pinned at that level early in the Asia session and lacks chart support until around $1.12.

Sterling dropped 1.2% to $1.3401, its lowest since December 2020 and the yen reversed a week of gains in a few hours and dropped 0.8% to 114.00 per dollar.

Emerging markets currencies also suffered from the dollar’s broad rise, with MSCI’s EM currencies index…

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