It was helped overnight, too, by a 0.4% fall in sterling after Britain’s budget for tax rises and spending cuts disappointed investors.
It also rose 0.9% on the Australian dollar overnight to $0.6690 per Aussie, and is on course for its first weekly gain on the Aussie since mid-October. “The Fed obviously doesn’t want to acknowledge and has been saying there’s a lot more work to be done,” said Jason Wong, senior strategist at BNZ in Wellington. “Markets are looking for further confirmation from the data,” he said, with US inflation readings for November and December crucial for discerning a trend.
In Japan, data showed consumer prices are surging at their fastest pace in 40 years, potentially putting pressure on authorities to step back from super-easy monetary policies, but the yen showed little immediate reaction.
So you are saying the dollar looses strength , when inflation softens .