Dollar Strengthens for Third Consecutive Trading Day

Reporter Hyunho Jo hyunho@ (Etoday DB)

The dollar strengthened for the third consecutive trading day on the 10th (local time), with the dollar index rising 0.08% from the previous day to 101.63.

The market is closely watching key inflation data and the U.S. presidential debates this week. On the 11th, the August Consumer Price Index (CPI) will be released, and on the 12th, the August Producer Price Index (PPI) will be released.

The Federal Reserve (Fed) is expected to hold the Federal Open Market Committee (FOMC) monetary policy meeting on the 17th and 18th. The market is expecting a 0.25%p decline in the base rate, which is about three times higher than the probability of 0.50%p.

Democratic Vice President Kamala Harris and Republican former President Donald Trump will hold a televised debate hosted by ABC News at the National Constitution Center in Philadelphia, Pennsylvania at 9 p.m. (10 a.m. on the 11th, Korean time). This debate has garnered significant interest since President Joe Biden declared that he would not run for reelection after suffering a crushing defeat in the first televised debate with Trump on June 27th.

Safe-haven currencies such as the yen and the Swiss franc gained ground after U.S. authorities announced measures to tighten bank capital regulations. The plunge in oil prices also added to the anxiety, putting pressure on these currencies to appreciate.

The yen-dollar exchange rate fell 0.05% from the previous day to 142.7 yen. Excluding the previous day, it has been on a downward trend since the 3rd.

The Swiss franc-dollar exchange rate was recorded at 0.8466 francs, down 0.3%.

Key Economic Indicators to Watch

• August Consumer Price Index (CPI) – 11th
• August Producer Price Index (PPI) – 12th
• Federal Open Market Committee (FOMC) monetary policy meeting – 17th and 18th

Related Topics

• US Presidential Debates
• Federal Reserve Monetary Policy
• Global Economic Trends