The American dollar rate today moderately declined against the euro and appreciated against the yen on Wednesday morning as investors assessed geopolitical risks and U.S. inflation data.

As it became known on Tuesday, producer prices in the United States (PPI) rose by 8% year on year in October and by 0.2% compared to September. Analysts polled by Trading Economics predicted on average an 8.3% growth for the former index and a 0.4% growth for the latter.

American dollar rate today – what affects the exchange rate?

Meanwhile, Rafael Bostic, head of the Federal Reserve Bank (FRB) in Atlanta, expressed the view that the Fed should continue to raise interest rates until there are signs of widespread easing in inflation. “We haven’t seen that yet, so I believe we will need new rate hikes,” Bostick wrote. He added, however, that he sees “glimmers of hope” in the past three months, but prices are falling mostly for goods, not services.

The currency market is also reacting to news of a rocket explosion in Poland, which killed two people. Several media outlets wrote that the missile could have come from Russian territory.

However, Polish President Andrzej Duda said the government could not yet confirm who fired the missile, and U.S. President Joe Biden said it was unlikely that it came from Russian territory. The Russian Defense Ministry denied that these were Russian missiles, noting that the military did not strike targets near the Ukrainian-Polish border.

Earlier, we reported that Europe’s active gas purchases threaten developing countries with serious potential energy problems.