The dollar index (DXY00) Wednesday rose by +0.32% and posted a 2-1/4 month high. Wednesday’s weaker-than-expected UK September consumer price report was dovish for BOE policy and undercut the British pound (^GBPUSD) to benefit the dollar. The dollar also found support on weakness in the euro ahead of an expected 25 bp rate cut by the ECB on Thursday. In addition, Wednesday’s stronger-than-expected US Sep import price index ex-petroleum report was a hawkish factor for Fed policy and supportive of the dollar. Lower T-note yields and strength in stocks on Wednesday limited the upside in the dollar.
The US Sep import price index ex-petroleum rose +0.2% m/m, stronger than expectations of +0.1% m/m.
