Dollar firm after US inflation report, yuan flat despite weak China prices data

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The dollar held firm on Friday after stronger-than-expected U.S. consumer inflation revived prospects that the Federal Reserve will have to keep rates higher for longer.

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Published by

13 Oct 2023

At the same time, investors digested producer and consumer prices data out of China that showed deflationary pressures were slightly stronger than expected.

«What we've got is a fairly weak growth story (from China), and that's weighing on the price numbers,» according to Rob Carnell, head of research at ING, who said that could put more pressure on the government to further support the economy.

Bloomberg News reported earlier in the week that China is considering raising its budget deficit for 2023 as the government prepares to unleash a new round of stimulus to help the economy meet the official growth target.

«But I would hasten to say, I don't think we're expecting anything big» as far as stimulus, Carnell added.

China's exports for September shrank by 6.2% from a year earlier, while imports also declined by 6.2%, customs data showed on Friday, both contracting at a slower