Neal Bhai Reports — Dollar Declines Further on Talk of Fed Rate Hike — The dollar fell for a second day against its peers, extending a retreat from a seven-month high, as a report showed that September consumer prices, excluding food and fuel costs, rose less than forecast.
The greenback dropped against most of its major peers on speculation that the Federal Reserve will raise interest rates in December, while taking a slow path on further increases. An uneven picture of the world’s biggest economy mirrors the approach that the Fed seems to be taking on poli cy, after Chair Janet Yellen laid out arguments last week for remaining accommodative without taking a 2016 hike off the table. “With underlying inflation underwhelming, it’s catalysed more profit-taking on the buck’s recent outperformance,“ said Joe Manimbo, an analyst with Western Union Business Solutions, in Washington.
“The market has come to a stronger view that they’ll raise rates in December, but that has very little influ ence on where rates are perceived to go in the longer term,“ said Adam Cole of Royal Bank of Canada in London. — Gold Silver Reports