According to Jin10 Data, the U.S. dollar surged over 1% this week on May 15, setting course for its best weekly performance since mid-March, as consecutive inflation data beat expectations and rekindled market bets on Federal Reserve rate hikes. “This is the combined effect of renewed Middle East tensions driving oil prices higher and U.S. inflation data coming in hotter than forecast,” said Andrew Hazlett, a foreign exchange trader at Monex.
A Federal Reserve official noted the U.S. is now facing inflation challenges, marking a sharp reversal from market expectations one month ago for rate cuts or looser policy.
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