US Dollar Continues Rise Driven by Inflation

The US dollar maintained its gains against major currencies during early Asian trading on Wednesday, November 11, 2026, nearing its highest level in two weeks, after US inflation data bolstered investor expectations that the Federal Reserve will raise interest rates again during its upcoming meeting in December.

The dollar index, which measures the performance of the US currency against a basket of six major currencies, recorded approximately 102.22 points, approaching its highest level since October 28, after achieving a rise of about half a percentage point during Tuesday's trading.

This performance followed the release of data showing that the US Consumer Price Index rose by 0.4 percent in October, exceeding economists' expectations of 0.3 percent, driven by an increase in food prices and housing costs, which renewed concerns about persistent inflationary pressures on the world's largest economy.

In the currency market, the euro stabilized near 1.1168 dollars, and the British pound at 1.3345 dollars, while the US currency traded at about 158.72 Japanese yen, as investors seek to reassess the expected path of US monetary policy.

Data from the CME Group's "FedWatch" tool showed that market expectations for a quarter-percentage-point hike in US interest rates in December rose to about 91.9 percent, compared to 84 percent a day earlier.

In parallel, the yield on the 10-year US Treasury note rose to about 4.996 percent, reflecting the impact of monetary tightening expectations on global debt markets.

Pressures also extended to the cryptocurrency market, where the price of Bitcoin fell to about 73,566 dollars during early trading, amid growing caution over the impact of rising borrowing costs on high-risk assets.

The dollar's rise reflects a shift in investor priorities, as inflation data and monetary policy have returned to the forefront of market drivers. However, the continuation of gains will remain linked to upcoming economic data and Federal Reserve decisions, especially since trader expectations do not represent an official decision to raise interest rates.