Soaring Dollar Is ‘Only Safe Haven Left’ After Hot US Inflation
- The dollar is on track for its biggest gain since May 5
- Pound leads G-10 losses as EM FX gauge sinks to May lows
This article is for subscribers only.
Investors are rushing to buy dollars after US inflation accelerated to a fresh 40-year high last month, adding pressure on the Federal Reserve for more aggressive interest-rate increases.
A key gauge of the dollar jumped 0.8% on Friday, heading for its biggest gain in five weeks after US consumer prices quickened 8.6% from a year earlier, topping estimates. The greenback’s strength sent nearly all of its Group-of-10 and emerging-market peers tumbling. MSCI Inc’s developing currency index is on track for its worst day since early May, led by losses in Brazil’s real and South African rand.