The inflation report was released before the Federal Reserve makes a second 50 basis point rate hike next Wednesday. The US central bank is also expected to raise the official rate by another half percentage point in July, after hikes since March of 75 basis points.
“Inflation is now at its highest level in 40 years, with little sign that it has peaked”said John Doyle, vice president of operations and trading at Monex USA, and expanded: “Stocks are extending losses on the expectation that the Fed may find room to accelerate rate hikes.”
The dollar index, which compares the greenback with six other currencies, rose 0.8% and stood at 104.16, its highest level since May 17, and a step away from 105.01, the maximum of two decades it reached in mid-May.
Sterling fell 1.5% to $1.2315 in a second straight week of declines as Britain’s gloomy economic outlook left investors on edge.
Source: Ambito
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