Dollar Set for Strong Weekly Advance

2026-05-15 02:03 By Jam Kaimo Samonte 1 min. read

The dollar index climbed to around 99 on Friday and was on track to post a weekly gain of more than 1%, supported by mounting inflationary pressures that strengthened expectations for a Federal Reserve rate hike later this year.

Data released earlier in the week showed US wholesale inflation accelerated at its fastest pace since 2022 in April, while consumer prices recorded their biggest increase since 2023 amid renewed price pressures stemming from the energy shock linked to the Iran conflict.

Retail sales growth slowed as anticipated but continued to point to resilient consumer demand.

Markets have now fully ruled out the possibility of a Fed rate cut this year, with some traders increasingly pricing in a potential rate hike by December.

Meanwhile, investors remained focused on the second day of high-level talks between President Donald Trump and Chinese President Xi Jinping, after Xi warned that Taiwan could become a source of “clashes” between the world’s two largest economies.



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