The greenback surged forward today while investors waited for the release of U.S. inflation data. The dollar index added 0.56% at 110.96 against the basket of six major currencies. It remained on track for a second straight session of substantial gains. The markets are also still contemplating the pros and cons of the U.S. midterm election results. However, investors’ attention focused mainly on the inflation figures, which are due later today. These numbers will likely affect the U.S. Federal Reserve’s decision about interest rate increases in the coming months.

Meanwhile, the euro exchanged hands lower by 0.71% at $0.9938. It dropped below parity again. On the other hand, the British Pound jumped by 0.11% to $1.1373. The currency managed to recover some of its losses from a 1.6% decline in the previous session.

Overall, the U.S. dollar will have gained more than 16% in 2022. However, its rally has lost some steam during the past few weeks. Traders discussed the possibility that the Federal Reserve would begin to slow its rapid interest rate hiking policy in December. Such sentiment weighed on the greenback.  

Moreover, economists think that the consumer price index inflation rate might have decreased in October. However, analysts maintain that the main focus will remain on the core reading about soaring food and energy costs. Jane Foley, the head of FX strategy at Rabobank, noted that this data might not bring the clarity that investors anticipate it will bring.

On Thursday, the yen plummeted by 0.11% to 146.54 USD. The currency had also dropped from an almost two-week peak of 145.18 in the previous session.

The Aussie also shaved off 0.58% to $0.6394 today. The New Zealand dollar tumbled down by 0.48%, exchanging hands at $0.5855 at last. Both currencies had decreased by more than 1% in Wednesday trading.

According to the latest results from Tuesday’s U.S. midterm elections, Republicans are closer to winning majority seats in the U.S. House of Representatives. However, Democrats performed better than analysts expected. Thus, control of the Senate is still hanging in the balance.

In Asia, emerging market currencies fell on Thursday after trading in the green for four straight days. The stocks also dropped from one-month peaks ahead of U.S. inflation data.