FILE PHOTO. A banker counts four thousand US dollars in a bank in Westminster, Colorado, USA. November 3, 2009. REUTERS / Rick Wilking
Por Dhara Ranasinghe
LONDON, Jan 12 (Reuters) – The dollar traded stable on Wednesday above its nearly two-month lows against peer currencies, ahead of the release of data expected to show a further advance in US inflation, which could reinforce the case for an anticipated increase in interest rates.
* Federal Reserve Chairman Jerome Powell gave no clear indication Tuesday that the Fed was in a rush to accelerate plans to tighten monetary policy, putting some downward pressure on the dollar, which has benefited from the expectations of rate hikes in the United States in recent weeks.
* And the currency has started to stabilize as the US consumer price index (CPI) release for December, due out at 1330 GMT, approaches.
* The dollar index at 95,643 units, stable on the day above the low of 95,533 units marked during the session in Asia, the lowest since November 18.
* Analysts expect the US headline CPI index to reach 7% on an annualized basis, which would be the highest 12-month inflation rate since 1982.
* The dollar was trading just 0.1% firmer at 115.40 yen, while the euro was stable at around $ 1.1364. A rise above $ 1.1387 per euro would push the single currency to its highest level since mid-November.
(Reporting by Dhara Ranasinghe. Edited in Spanish by Marion Giraldo)