The dollar climbed to a 16-month high earlier Friday, and headed for a weekly gain of around 1%, following the latest inflation release showing consumer prices rising at the fastest annual pace since 1990, increasing the pressure on the Federal Reserve to hike interest rates earlier than expected.
Organization of the Petroleum Exporting Countries and its allies, a group of major producers known as OPEC+, rebuffing calls from President Joe Biden, among others, to boost production at a faster rate.
The group agreed earlier this month to stick to its existing pace of easing the record output cuts by just 400,000 barrels a day.
OPEC+ is reluctant to increase supply by more than previously agreed because they see demand stalling in the fourth quarter, weighed by the high energy prices, while the global economic recovery stops being driven by a revival in demand for goods, which in turn has stoked energy demand, toward recovery in demand for services.
Additionally, the group sees strong non-OPEC supply next year, keeping its forecast unchanged at 3.02 million barrels a day.
