Dollar Climbs Higher Ahead Of Inflation Data

(RTTNews) - The U.S. dollar firmed against its major counterparts on Wednesday as traders awaited U.S. consumer price inflation data for clues about the outlook for interest rate hikes.

Traders also looked ahead to the outcome of the U.S. midterm elections.

According to reports, the Republicans are likely to earn a narrow majority in the House. Several candidates backed by former President Donald Trump have reportedly underperformed.

Economists expect the data from the Labor Department tomorrow to show a modest slowdown in the annual rate of consumer price growth, which could add to optimism about a slowdown in the pace of rate hikes.

In economic news today, a report from the Commerce Department showed wholesale inventories in the U.S. increased by less than expected in the month of September.

The report said wholesale inventories rose by 0.6% in September after surging by an upwardly revised 1.4% in August. Economists had expected wholesale inventories to climb by 0.8% compared to the 1.3% jump originally reported for the previous month.

The dollar index, which climbed to 110.64 earlier this afternoon, is currently at 110.47, up 0.76% from the previous close.

Against the Euro, the dollar strengthened to 1.0010 from 1.0075.

The dollar is trading at 1.1353 against Pound Sterling, rising sharply from the previous closing level of 1.1546.

Against the Japanese currency, the dollar is strong, fetching 146.37 yen a unit, up from 145.69 yen on Tuesday.

The dollar is up against the Aussie at 0.6429, firming from 0.6507.

Against Swiss franc, the dollar is up marginally, fetching CHF0.9847 a unit. The Loonie is down at 1.3529 a dollar, easing from 1.3429.