U.S. Dollar Surge Sparks Inflation and Interest Rate Concerns

The U.S. dollar experienced an across-the-board rise on Thursday as recent data indicated a significant increase in U.S. producer prices for July. This surge, primarily due to rising costs in services and goods, points to a potential inflation hike in the coming months.

Despite an anticipated Federal Reserve interest rate cut in September, the unexpected inflation figures and the impact of tariffs cast doubt on the likelihood of aggressive monetary policy easing this year. Analysts suggest a maximum of two rate cuts should inflation persist at current levels.

Traders remain confident in the September rate cut; however, the dollar's long-term rebound remains uncertain with upcoming announcements from the Federal Reserve. Meanwhile, bitcoin faced volatility, affected by institutional investments and regulatory shifts.

(With inputs from agencies.)