11.11. Dollar at annual high, inflation worries intensify

News for today, November 11:

US consumer prices rose at the fastest pace since 1990, which could lead to a faster tightening of the Federal Reserve's policy. Fears over inflation weighed on Asian stocks and sustained the dollar at a nearly 16-month high. However, the region's largest markets in mainland China and Japan went against the general trend, supported by easing concerns over Evergrande and a weaker yen, which helps Japanese exporters.

The U.S. consumer price index rose 6.2% year-on-year. This confirms fears that inflation will remain high in 2022 as well. The U.S. dollar rose on expectations that the actions of the White House and the Federal Reserve to contain the rising price could lead to higher interest rates and a tightening of monetary policy. The dollar hit a 2021 high against the pound sterling and the euro on Thursday, while the yen experienced the sharpest drop in a month.

Investors were seeking to hedge against inflation: gold spiked to a five-month high of $ 1868.20 overnight before dropping to around $ 1850 on Thursday, while Bitcoin set a new record of $ 69 000 before dipping to around $ 64 700. The price of Brent crude is $ 82.76 per barrel, WTI — $ 81.51. EUR/USD is at 1.1462, GBP/USD — 1.3386, gold is at $ 1,856.30 per ounce.­­­­