Dollar up slightly as investors await US inflation data

The dollar rose slightly on Monday as investors awaited inflation data this week, which is expected to show that price pressures remain strong.

Meanwhile, the British pound fell for the fourth consecutive session even after the Bank of England extended its support to the markets.

According to “Reuters”, US data is expected on Thursday to show that the overall inflation rate reached 8.1% on an annual basis in September, but fell from 8.3% in August. The core inflation rate is also expected to rise to 6.5% from 6.3% previously.

The dollar index rose 0.33% to 113.16, surpassing its lowest levels around 110 last week, and returning to its highest level in 20 years, reached last month at 114.78. The euro fell 0.39% to $0.9694.

The Bank of England said it was ready to buy up to 10 billion pounds ($11.07 billion) of British bonds on Monday, double the previous limit.

However, the sterling fell for the fourth consecutive session despite the Bank of England’s move. In the latest trading, it fell 0.37% to $1.1052, but remained well above its September record low of $1.0327.

The Japanese yen witnessed little change after falling towards levels that prompted the authorities to intervene to support it last month. The yen was last trading at 145.46 to the dollar.

With Chinese markets reopening after a week-long holiday, the yuan at the opening reached 7.10 to the dollar before falling to 7.1431.

The Australian dollar fell 1.01 percent to its lowest level in more than two years at $0.6301.