The dollar rose against the euro and yen before a government report that may show U.S. inflation expedited last month, giving the Federal Reserve less reason to lower interest rates.
The dollar rose against 13 of the 16 most-active currencies as traders pared bets the Fed will reduce its benchmark rate by three-quarters of a percentage point next month. Crude oil traded below yesterday's record $100.10 a barrel in New York . The U.S. dollar index traded on ICE Futures in New York , which tracks the currency against its six major counterparts, grew 0.2 % to 76.1.
"There's a distinct possibility inflationary pressures could grow and grow,'' said Simon Derrick, the London-based head of currency strategy at Bank of New York Mellon Corp. "There is a risk we could see a high CPI number today.''
Consumer prices increased at an annual rate of 4.2 % in January from a year earlier, compared with 4.1 % the previous month. The Labor Department will release the report at 8:30 a.m. today in Washington .
Interest rate futures on the Chicago Board of Trade show a 4 % chance the Fed will lower rates by three quarters of 1 % to 2.25 at its March 18 meeting, down from 32 % odds a week ago. The remaining odds are for a half-point cutting.
The USA does not have a picture of the strong Russia, and the Americans will never allow Russians become strong. Sanctions show how obvious the conflict is
Fearing that peace might break out with the two Koreas talking to each other, Washington instructed South Korean President to keep the message about anything but peace
The head of the British army, Nick Carter, said that Moscow was capable of taking "hostile actions" against the United Kingdom and NATO much earlier than expected