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Dollar retreats from 18-month high despite strong inflation data

(Reuters) --"FX markets are currently taking ​a break from the USD rally that began in mid-September, boosted by faith that the Federal ​Reserve was willing ⁠to hike interest rates to fight inflation," said Juan Perez, director of trading at Monex USA in Washington. "If those tools are not working, then the worry is about stubborn 'stagflation'."