News: WBC FOREX-Dollar rises after case for U.S. rate hikes strengthens

	  Strong U.S. jobs and high CPI forecast strengthen hike 

bets

	  Bank of England expands support for financial markets 

	  Australian dollar hits 2-1/2 year low 

The dollar edged higher on Monday as investors set their sights on inflation data later in the week that is expected to show that price pressures remain strong.

Meanwhile, sterling slipped for the fourth straight session even after the Bank of England (BoE) expanded its support for financial markets.

U.S. data due on Thursday is forecast to show that headline inflation came in at a hot 8.1% year-on-year rate in September, but down from 8.3% in August. Core inflation is expected to have risen to 6.5% from 6.3% previously.

Unemployment unexpectedly fell and the U.S. economy added more jobs than predicted in September, data showed last week. That pushed up bond yields as traders increased their bets that the Federal Reserve would hike interest rates by 75 basis points in November for the fourth meeting running.

Westpac strategist Sean Callow said the data and rising yields in response was a "robust combination for the dollar."

"It's further evidence that the U.S. economy is not cratering," he said. "It just feeds into the notion that the Fed is going to spend the next three weeks saying the same thing about interest rates."

The U.S. dollar index =USD was up 0.33% at 113.18 on Monday, off lows around 110 last week and creeping back toward last month's 20-year high of 114.78. The euro EUR=EBS was down 0.4% to $0.9692.

In Britain, the Bank of England attempted to ease concerns about the end of its emergency bond-buying scheme.

UK markets went into a tailspin in late September after the government unveiled a plan to slash taxes and ramp up borrowing. The pound tumbled and the BoE was forced to intervene to prop up bond markets.

The BoE said it was prepared to buy as much as 10 billion pounds ($11.07 billion) of gilts on Monday, double the previous limit. It also created a new scheme to help banks more easily access cash.

Sterling GBP=D3 slipped for a fourth session running despite the BoE's move. It was last down 0.42% to $1.1046, although it remained well above the Sep. 26 record low of $1.0327.

Geopolitical tensions and higher oil prices also caused renewed nervousness about growth, pushing investors back toward the dollar.

Russia pounded Kyiv and other Ukrainian cities with missiles in response to a blast that hit its only bridge to Crimea. Russia's rouble RUBUTSTN=MCX fell to 63 per dollar for the first time since July 7.

The Aussie dollar AUD=D3 fell to a 2-1/2-year low of $0.6829 as the greenback rose. The Reserve Bank of Australia last week raised interest rates by less than expected, adding to the pressure on the currency. Higher interest rates typically attract investors toward a country's assets.

Japan's yen was little changed after slipping toward levels that prompted authorities' intervention to support it last month. The yen JPY=EBS was last at 145.49 per dollar.

Chinese markets reopened after a week-long holiday. The yuan CNH=CFXS opened at 7.10 per dollar before slipping to 7.1487.

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	Currency bid prices at 1103 GMT 

 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
											  Previous				   Change				  
											  Session											
 Euro/Dollar	   EUR=EBS																	   

							  $0.9692		 $0.9732	-0.40%		  -14.74%	 +0.9754	 +0.9682 
																								 
 Dollar/Yen		JPY=EBS																	   

							  145.5050		145.2700   +0.14%		  +26.47%	 +145.6550   +145.2700 
																								 
 Euro/Yen		 
				  S>		  141.03		  141.62	 -0.42%		  +8.23%	  +141.8000   +140.9100 
																								 
 Dollar/Swiss	  CHF=EBS																	   

							  0.9991		  0.9949	 +0.40%		  +9.51%	  +0.9991	 +0.9934 
																								 
 Sterling/Dollar   GBP=D3																		

							  1.1046		  1.1093	 -0.42%		  -18.32%	 +1.1110	 +1.1027 
																								 
 Dollar/Canadian   CAD=D3																		

							  1.3724		  1.3739	 -0.09%		  +8.57%	  +1.3761	 +1.3719 
																								 
 Aussie/Dollar	 AUD=D3																		

							  0.6307		  0.6366	 -0.93%		  -13.23%	 +0.6380	 +0.6288 
																								 
 NZ				NZD=D3																		

 Dollar/Dollar				0.5578		  0.5594	 -0.24%		  -18.47%	 +0.5629	 +0.5575 
																								 
																								 
 All spots  FX=  
Tokyo spots  AFX=  Europe spots  EFX=   Volatilities  FXVOL=   Tokyo Forex market info from BOJ  TKYFX  ($1 = 0.9031 pounds) 
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World FX rates	https://tmsnrt.rs/2RBWI5E 

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