Dollar Surges Amid Inflation Data and Tariff Tensions

The dollar hit a 15-week high against the yen following a rise in U.S. consumer prices, while the Federal Reserve maintained caution on interest rate cuts. Tariff policies and market reactions are closely watched, as are the inflationary pressures expressed by experts and economic indicators.

The U.S. dollar gained strength on Tuesday, reaching a 15-week high against the Japanese yen, amid rising consumer prices as shown in U.S. data for June. While this inflationary trend has not shifted the Federal Reserve's stance on potential interest rate cuts, President Donald Trump's tariff policies are thought to continue influencing market trends.

Brian Jacobsen of Annex Wealth Management remarked that the impact of tariffs on the market might not be as severe as anticipated. The Consumer Price Index saw notable increases, rising 0.3% in June after a modest 0.1% climb in May, marking the largest jump since January this year. Meanwhile, the core inflation metric saw a slight rise to 2.9% over a 12-month period through June.

With traders anticipating 48 basis points in rate cuts by year-end, the focus remains on upcoming economic data, which could alter the Federal Reserve's actions. Contrastingly, the euro weakened, while the dollar's performance against the yen and sterling highlighted ongoing global market fluctuations amid tariff announcements and negotiations.

(With inputs from agencies.)