Dollar Stabilizes Ahead of US Inflation Data

The dollar steadied after a recent retreat as markets awaited October U.S. inflation data, seen as a key signal for the Federal Reserve’s December decision. A stronger-than-expected jobs report and expectations of higher interest rates have supported the greenback, while a rally in global stocks and falling Treasury yields have weighed on it by encouraging risk-taking and reducing the dollar’s yield advantage. Forecasts point to a slower monthly rise in consumer prices than in September, though analysts say hotter-than-expected inflation could strengthen rate-hike bets and lift the dollar further. The dollar remains higher for the year, and markets continue to anticipate further Fed tightening, even as the currency’s near-term direction hinges on inflation and changing risk sentiment.