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The Dollar Is Losing Ground

The dollar, which measures the value against a basket of six other currencies, reached a high of 106.76 earlier in the day before falling 0.3% to 106.013.

However, Moscow denied responsibility for the strike. U.S. Vice President Joe Biden stated that preliminary information indicated that the weapon was most likely not from Russia, though the investigation was still ongoing.

The dollar fell on Tuesday after a weaker rise in producer prices, adding to the cool consumer inflation data released last week, which suggested the Federal Reserve’s aggressive rate-hiking run was ending.

European leaders have ensured that natural gas storage is full for this winter. Still, they will need to source new supplies for next year if they are to wean themselves off Russian hydrocarbons — an exercise that is likely to be costly as global demand rises.

Currencies

GBP/USD was trading flat at 1.1858, just below its highest level in three months, after data showed that the U.K. In October, inflation reached a new multi-decade high, fueled by rising food and energy prices.

The consumer price index increased by 2.0% in September alone and 11.1% year on year, exceeding forecasts of a 1.7% monthly increase and a 10.7% annual rate.

These figures point to more interest rate hikes by the Bank of the UK, which will disappoint the United Kingdom. On Thursday, the government will announce new tax and spending plans for the coming years.

The EUR/USD rose 0.4% to 1.03819, near a three-month high, while the riskier AUD/USD rose 0.1% to 0.6763, maintaining its gains despite rising geopolitical tensions.

USD/JPY rose 0.21% to 139.62, while USD/CNY rose 0.532% to 7.0770, with the yuan under pressure after data showed Chinese house prices fell to a seven-year low in October. European stock markets fell on Wednesday as investors were alarmed by a deadly missile blast in Poland near the Ukrainian border.
London fell 0.1 percent on news that UK inflation hit a 41-year high in October due to skyrocketing energy and food prices.



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