FOREX-Dollar holds firm ahead of U.S. inflation data

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    * Currencies tread water ahead of U.S. CPI data
    * Bitcoin, ether scale record highs
    * Graphic: World FX rates tmsnrt.rs/2RBWI5E

 (Updates prices, adds commentary, byline, previous dateline
LONDON)
    By Sinéad Carew
    NEW YORK, Nov 9 (Businesshala) - The dollar index was barely
higher on Tuesday as traders were cautious a day ahead of highly
anticipated U.S. inflation data.
    The dollar zig-zagged after Tuesday's data showed U.S.
producer prices increased solidly in October, indicating that
high inflation could persist for a while amid tight supply
chains related to the pandemic.
    But traders were holding back on big moves ahead of consumer
price index (CPI) data due out on Wednesday morning with
inflation being the hot topic for discussion.  
    "Looking for any sort of major moves ahead of the U.S. CPI
tomorrow is going to be futile. We will likely see a little bit
more movement on the FX side of things after CPI," said Mazen
Issa, senior FX strategist at TD Securities.
    He expects "a stronger print than consensus on what is
already expected to be a fairly hot CPI print." 
    Economists polled by Businesshala see monthly CPI accelerating to
0.4% from the previous month's 0.2% rise, with the closely
watched year-on-year core measure gaining 0.3 percentage points
to 4.3%, well above the Fed's average annual 2% inflation
target.
    The dollar index was up 0.03% at 94.0730 while the
euro dipped 0.03% to $1.1583.
    Elsewhere, the yen reached a one-month high against the
greenback of 112.73, before fading back to trade last at 112.91
.
    Sterling, hammered last week in the wake of the
Bank of England's surprise decision to keep rates on hold, was
down 0.21% at $1.3537.
    The New Zealand dollar dipped 0.61% to $0.7122
after jumping on Monday. It has been drawing support from
traders wary of the possibility that the Reserve Bank of New
Zealand could raise rates by as much as 50 basis points later
this month.
    The risk-sensitive Australian dollar dropped 0.6%
to trade at $0.7377. 
    Bitcoin rose to a record $68,564.40 before
reversing course. It was last down 0.4% at $67,261. Also earlier
ether hit a record high of $4,842.65. 
    
        
========================================================
    Currency bid prices at 10:08AM (1508 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct       High Bid    Low Bid
                                              Previous                   Change                   
                                              Session                                             
 Dollar index                 94.0730        94.0540     +0.03%         4.548%        +94.1180    +93.8720
 Euro/Dollar                  $1.1583        $1.1587     -0.03%         -5.19%        +$1.1609    +$1.1570
 Dollar/Yen                   112.9100       113.2200    -0.27%         +9.28%        +113.2900   +112.7300
 Euro/Yen                     130.79         131.18      -0.30%         +3.05%        +131.2600   +130.6900
 Dollar/Swiss                 0.9137         0.9136      -0.01%         +3.26%        +0.9153     +0.9117
 Sterling/Dollar              $1.3537        $1.3566     -0.21%         -0.91%        +$1.3607    +$1.3538
 Dollar/Canadian              1.2481         1.2441      +0.33%         -1.98%        +1.2482     +1.2430
 Aussie/Dollar                $0.7377        $0.7423     -0.60%         -4.08%        +$0.7431    +$0.7377
 Euro/Swiss                   1.0581         1.0585      -0.04%         -2.09%        +1.0597     +1.0569
 Euro/Sterling                0.8555         0.8542      +0.15%         -4.27%        +0.8560     +0.8522
 NZ                           $0.7122        $0.7168     -0.61%         -0.79%        +$0.7174    +$0.7124
 Dollar/Dollar                                                                                    
 Dollar/Norway                8.5240         8.5060      -0.18%         -1.12%        +8.5245     +8.4845
 Euro/Norway                  9.8769         9.8507      +0.27%         -5.64%        +9.8778     +9.8309
 Dollar/Sweden                8.5741         8.5713      -0.03%         +4.61%        +8.5882     +8.5391
 Euro/Sweden                  9.9319         9.9345      -0.03%         -1.43%        +9.9455     +9.8962
 
    
 (Reporting by Tommy Wilkes in London, Sinéad Carew in New York;
Additonal reporting by Stephen Culp in New York; Editing by
Emelia Sithole-Matarise, Bernadette Baum and Jan Harvey)
  
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