US Dollar Stabilizes Ahead of October Inflation Data

The US dollar stabilized during Tuesday's Asia session as investors awaited the release of October inflation data. The currency had previously declined amid market volatility, as falling oil prices and rising stocks prompted traders to shift toward riskier assets.

Market participants are currently pricing an 85% chance that the Federal Reserve System will increase interest rates next month, a sentiment driven by a strong October jobs report. Economists anticipate headline inflation will reach 3.9% and core inflation will hit 2.8% year-on-year. Figures exceeding these estimates are expected to strengthen bets on a rate hike and provide further support for the dollar.

Simultaneously, the Japanese yen has remained steady following significant official intervention. Data indicates the Government of Japan sold $97 billion in reserves through late July and August to defend the currency's value.