The greenback jumped to a one -year high after U.S. inflation data released in the previous session showed a higher -than -expected increase.
The US annual consumer price index (CPI) rose 6.2% in October, which was the highest level ever recorded since 1990 and far exceeded expectations for a 5.8% increase.
Meanwhile, month -on -month, the CPI reading rose 0.9% against the projection of 0.6% and core inflation rose 0.6% against the expected increase of 0.4%.
A sharp spike in inflation has driven the US dollar and 10 -year US treasury yields to higher in response to tighter policy expectations by the Federal Reserve (Fed)
Against a basket of major currencies, the dollar index was at its highest level this year with a strong trade at 94.90. Meanwhile, bond yields rose to around 1.57.
The European currency was among the most affected, with the euro plunging to its lowest level since July 2020 bringing it trading lower to around 1.1480 against the US dollar.
Meanwhile, the pound was under double pressure, causing it to plunge to its lowest level since December 2020 to trade at around 1.3400 against the USD.
UK economic growth data today will be the focus of investors who are expected to show a decline in the third quarter of this year.
