The dollar stabilized ahead of the release of U.S. inflation data and the Federal Reserve's final meeting of the year, which investors are watching for updates on interest rate forecasts. A month ago, predictions that inflation may have peaked led to a wave of bond buying and dollar selling. The upcoming U.S. inflation data will test this assumption.
The dollar rose 0.8% against the yen yesterday and settled at 137.70 yen during the Asian session. It also maintained its gains against the Australian dollar at $0.6759. The dollar index remained steady at 105.01, down from a 20-year high of 114.78 in late September. The euro stabilized at $1.0539, and the British pound at $1.2268. The Swiss franc was reported at 0.9360 to the dollar, as traders awaited meetings on Thursday from the European Central Bank, the Bank of England, and the Swiss National Bank.
