Dollar Rebounds Amid Inflation Concerns
The U.S. dollar rebounded, ending a two-day decline, as July producer prices rose higher than anticipated, suggesting potential inflation increases. Despite hopes for Fed rate cuts, rising tariffs and inflation may alter expectations. Meanwhile, Bitcoin reached a new peak before dropping slightly, influenced by increased institutional investment and regulatory changes.
The U.S. dollar showed signs of recovery on Thursday, ending a two-day slump as July producer prices exceeded expectations. This gain amidst service and goods cost surges signals potentially rising inflation in upcoming months.
This inflationary trend could complicate expectations for an aggressive series of interest rate cuts by the Federal Reserve. While traders anticipate a rate cut next month, higher-than-expected inflation and tariffs might inhibit further monetary easing.
Bitcoin made headlines as it peaked at $124,480.82 before retracting. Recent regulatory changes have bolstered institutional investments in cryptocurrencies. Corporate giants like MicroStrategy and Block Inc. continue their crypto acquisition spree, signaling robust market interest.
(With inputs from agencies.)
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