US dollar index rose 0.2% to 98.49 as April producer price index surged 1.4% month‑over‑month, the biggest gain since March 2022.
Year‑over‑year PPI jumped 6%, also a peak since December 2022, outpacing analysts’ forecasts of 4.9% YoY.
The data kept expectations of Fed rate hikes later in 2026 alive, with CME FedWatch showing continued upside risk.
Kevin Warsh was confirmed by the Senate as Jerome Powell’s successor, while Trump’s China visit aims to discuss trade, Iran and Taiwan.