Rate hike bets support the dollar amid surging U.S. inflation
A U.S. one dollar banknote is seen in this illustration taken November 23, 2021. REUTERS/Murad Sezer/Illustration
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LONDON, Feb 11 (Reuters) – The dollar rose to an eight-day high on Friday after U.S. inflation surged to a 40-year peak and comments from a Federal Reserve official unleashed a wave of bets on aggressive rate hikes.
Meanwhile the euro, which surged last week, was set for a weekly decline after European Central Bank President Christine Lagarde said in an interview that raising rates now would not bring down record euro zone inflation but only hurt the economy.
Data showed on Thursday that U.S. consumer prices rose 7.5% year-on-year in January, slightly higher than economists’ forecasts. read more
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After that, St. Louis Fed President James Bullard told Bloomberg he’d like to see 100 basis points of hikes…
