The Bloomberg Dollar Spot Index experienced a significant rise, marking its largest increase since February 4. This surge followed the release of U.S. January Consumer Price Index (CPI) data, which surpassed market expectations. The higher-than-anticipated overall and core CPI figures have led financial markets to adjust their forecasts for the Federal Reserve's next interest rate cut, moving the expected timing from September to December.
On the day of the report, the Bloomberg Dollar Spot Index climbed by 0.5%, with all G-10 currencies declining against the dollar. The Japanese yen saw the most substantial drop, falling over 1% and leading the decline among other currencies.
