Data on September inflation in the US knocked the US dollar down from its three-year highs against the Japanese yen. But the dollar lost slightly against all major world currencies. Most against the euro.
Immediately after the release of September inflation data in the US, the US dollar reacted with growth against the Japanese yen. But it was only a short-term fluctuation, and in the end the dollar lost 0.347 percent against a basket of six currencies. It thus fell from the highest level since last September. It weakened against the Japanese yen by 0.15 and against the euro by 0.35 percent. The weakening of the dollar was also supported by a slight decline in the yield on long-term government bonds.
The inflation rate returned to its highest level since 2008 in September, accelerating from 5.3 percent in August to 5.4 percent year on year. Month-on-month, price growth rose from 0.3 in August to 0.4 percent in September. The prices of food, housing or fuel had the strongest effect on accelerating inflation. The US economy is also further plagued by a “stuck” supply chain, making industrial commodities more expensive. This is then passed on to consumer inflation, which has remained above five percent for several months.
