NEW YORK: The US dollar strengthened on Tuesday as investors turned cautious after a Johnson & Johnson Covid-19 study was paused while a gauge of inflation rose for a fourth straight month. Major equity averages were lower, partly due to a decline in J&J shares after the company paused due to an unexplained illness in a participant, dampening optimism a vaccine was on the horizon.
US consumer prices rose 0.2% in September, matching expectations, for a fourth straight monthly climb, though the pace has slowed amid considerable slack in the economy as it gradually recovers from the Covid-19 recession.
The dollar index rose 0.416% against a basket of other currencies, putting it on track for its biggest daily percentage gain in three weeks.
The greenback has held within a range of about 2% over the past three weeks as talks on a fiscal deal have progressed in fits and starts. On Tuesday, US House Speaker Nancy Pelosi said the offer President Donald Trump recently made on a package after he scrapped talks fell far short of what the American people need, but she still hopes a deal can be reached.
Sterling was last trading at $1.2987, down 0.59%, after climbing above the $1.30 mark for the first time in a month on Friday as Britain's unemployment rate rose by more than expected to 4.5% in the three months to August.
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