U.S. Dollar Index Rises 0.1% to 99.96 on June 10 as May CPI Data Meets Expectations

On June 10, according to official data, the U.S. Dollar Index rose 0.1% to 99.96, as the market digested May CPI data showing year-over-year inflation at 4.2% overall and 2.9% for core CPI, both in line with expectations. Core goods prices declined 0.1% month-over-month, easing market concerns about sustained inflation and lowering expectations for Federal Reserve rate hikes this year.

The dollar also benefited from safe-haven demand amid escalating Middle East tensions, with U.S. military strikes on Iran and oil-related energy prices surging 23.5% year-over-year. Meanwhile, the euro held steady ahead of Thursday's ECB rate decision, while the yen weakened to above 160 per dollar as markets anticipate Bank of Japan rate hikes next week.