The U.S. Dollar Index surged on the 13th, climbing 0.28% to close at 99.134 in the final trading session. This marks a firm consolidation above the key 99 level amid rising global market volatility.
Key Drivers Behind the Rally
The dollar’s strength was fueled by a combination of factors. Hotter-than-expected inflation data reinforced expectations that the Federal Reserve could keep interest rates elevated for longer. At the same time, weakening economic indicators from Europe put downward pressure on the euro, providing indirect support to the greenback.
- U.S. core CPI rose 0.4% month-on-month, beating forecasts
- Industrial output in the eurozone declined for the second consecutive month
- Bank of Japan maintained its ultra-loose monetary stance
Outlook and Market Implications
Analysts suggest the dollar may continue gaining if the U.S. economy outperforms sluggish counterparts. Upcoming retail sales data will be closely watched as a gauge of consumer resilience. With global monetary policies diverging, the dollar’s appeal as a safe-haven asset is likely to grow in the near term.