Dollar Dips as Inflation Rises: Impact on US Economy
The U.S. dollar weakened Thursday against the yen after data revealed a rise in U.S. inflation for September, suggesting a continuation of the Federal Reserve's interest rate cuts. The CPI rose 0.2% for the month, with a year-on-year increase of 2.4%, the smallest since February 2021.
The U.S. dollar saw a decline against the yen on Thursday, following the release of data indicating a higher-than-expected rise in U.S. inflation for September. Despite a general downward trend in prices, the Federal Reserve remains poised to cut interest rates further, analysts suggest.
The Labor Department's figures showed a 0.2% increase in the consumer price index (CPI) for September. Over the past 12 months, the CPI recorded a 2.4% rise, marking the smallest annual increase since February 2021, highlighting tempered inflationary pressures.
In the currency market, the greenback slipped 0.54% to 148.50 yen, after previously reaching 149.58 yen—the first instance since August 2. Concurrently, the dollar index, which evaluates the currency against six major counterparts, saw a minor decrease to 102.780, after achieving its highest point since August 16.
(With inputs from agencies.)
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