FX.co ★ Dollar Climbs to Near 1½-Month High

The dollar index climbed to approximately 99.2 on Wednesday, nearing its highest mark since early December. This movement came as the latest inflation figures had minimal effect on the Federal Reserve's near-term policy outlook. Data revealed on Tuesday indicated that the U.S. Consumer Price Index (CPI) largely aligned with expectations, reinforcing the belief that the Fed will likely maintain its current policy stance later this month. Nonetheless, underlying price pressures appeared to have eased, as the monthly core inflation rate registered at 0.2%, below the forecasted 0.3%. Additionally, the dollar remained resilient despite apprehensions regarding the Federal Reserve's independence following the Department of Justice's threat of a criminal indictment against Fed Chair Jerome Powell. Remarks from other leading central bankers and CEOs of major Wall Street banks in support of Powell contributed to stabilizing the markets. Investors are now focusing on Wednesday's U.S. Producer Price Index (PPI) and retail sales reports for more insights into the economic direction.