The US inflation data exceeded expectations, traders increased their bets on the Fed's interest rate hike, and the US dollar hit a new high in more than a year. The Bloomberg Dollar Spot Index broke through the November high on Wednesday, with the biggest increase of 0.4%, hitting its highest level since May 2025. According to data from the US Bureau of Labor Statistics, US consumer prices recorded the biggest increase in five months, driven by rising fuel costs. Monex foreign exchange trader Andrew Hazlet said, “The CPI was higher than expected. This morning, the dollar was boosted. Traders are pricing the Federal Reserve to further tighten its policy.” In the four weeks up to October 9, the US dollar has accumulated a cumulative increase of nearly 3%, breaking out of the longest continuous upward trend since the beginning of 2025. Since the Federal Reserve completed its first rate hike in three years last month, when combined with hawkish statements from officials, traders continued to raise interest rate expectations, driving up the dollar's strength in this round. The current market pricing has accumulated interest rate hikes of over 90 basis points in the US.

The US inflation data exceeded expectations, traders increased their bets on the Fed's interest rate hike, and the US dollar hit a new high in more than a year. The Bloomberg Dollar Spot Index broke through the November high on Wednesday, with the biggest increase of 0.4%, hitting its highest level since May 2025. According to data from the US Bureau of Labor Statistics, US consumer prices recorded the biggest increase in five months, driven by rising fuel costs. Monex foreign exchange trader Andrew Hazlet said, “The CPI was higher than expected. This morning, the dollar was boosted. Traders are pricing the Federal Reserve to further tighten its policy.” In the four weeks up to October 9, the US dollar has accumulated a cumulative increase of nearly 3%, breaking out of the longest continuous upward trend since the beginning of 2025. Since the Federal Reserve completed its first rate hike in three years last month, when combined with hawkish statements from officials, traders continued to raise interest rate expectations, driving up the dollar's strength in this round. The current market pricing has accumulated interest rate hikes of over 90 basis points in the US.