Dollar index extends gains above 99 for third day

The dollar index climbed above 99 on Friday, marking a third straight session of gains, after US inflation data reinforced expectations that the Federal Reserve may raise interest rates next week. 4%, in line with expectations and the lowest since March 2021. 4% from a year earlier, with the reading reflecting higher energy costs. The figures pointed to persistent inflation amid elevated oil prices, tariffs and continued investment in data centres.

Markets then priced in about a 90% probability of a rate hike at the Fed’s September 15-16 meeting. Oil prices also remained in focus, having recently moved above 100 a barrel as conflicts in the Middle East and between Russia and Ukraine continue to disrupt supplies.