The US dollar strengthened against most major currencies on Thursday ahead of the release of delayed US consumer inflation data. Traders also weighed on trade tensions between Washington and Beijing as the euro and sterling remained in a narrow range.
The greenback strengthened 0.5% to 152.69 yen, while the euro fell 0.2% to US$1.1589. Friday’s inflation data will be used to help gauge the annual cost of living adjustment for 2026, although the Federal Reserve’s policy focus now shifts to the labor market.
The yen continued to weaken, nearing a seven-month low, after the inauguration of Japan’s new Prime Minister, Sanae Takaichi, known for his loose fiscal and monetary approach. Markets are now awaiting the exact details of the country’s economic stimulus package.
Sterling slipped slightly to US$1.3338 after weak UK inflation data raised expectations of another interest rate cut by the Bank of England. Meanwhile, the Norwegian krone strengthened below 10 per dollar on rising oil prices, while the euro fell to a one-month low.
The Swiss franc remained weak near 0.92 per euro, a level that analysts believe could trigger SNB intervention. Société Générale expects the EUR/CHF pair to surge in the near term if pressure on the franc continues.
