ASX 200 retreats as hotter CPI shores up February rate hike; dollar jumps to five-month high

Shares down for first time in one week as hotter CPI shores up a February rate hike. Dollar hits five-month high. Evolution falls on production report. Atlas sees fall in toll users.

The Australian sharemarket is expected to fall as Wall Street wavers on mixed company earnings. Picture: NCA NewsWire / Damian Shaw

Welcome to the Trading Day blog for Wednesday, January 25. The Australian sharemarket recorded its first decline in a week after hotter than expected inflation fuelled fears of further interest rate hikes.

The S&P/ASX 200 index lost 22.10 points, or 0.3 per cent, to close at 7468.30.

Wall Street ended mixed as S&P 500 index slid 0.1 per cent, the Nasdaq fell 0.3 per cent and the Dow Jones index rose 0.3 per cent.

The dollar was at a five-month high of US71.05c at the close, amid a sharp upward re-pricing of interest rate bets post CPI.