NEW YORK, Sept. 13 (Xinhua) — The U.S. dollar rose in late trade on Wednesday, following a slightly hotter-than-expected consumer price index (CPI) report for August.
The dollar index, which measures the greenback against six major peers, rose 0.06 percent to 104.7727 in late trade.
The US Bureau of Labor Statistics released its latest CPI report on Wednesday. US inflation rose 0.6 percent in August compared to a month ago as the market expected. The core CPI, which excludes volatile oil and food prices, rose 0.3 percent, higher than estimates and July’s 0.2 percent.
The report showed headline inflation rose 3.7 percent in August from a year ago, up from a 3.2 percent increase in July. Rising energy prices fueled the rally, while underlying price pressures remained mostly mild.
U.S. stocks edged ahead and U.S. Treasury yields swung within a narrow range on Wednesday after the CPI data.
“This was a complicated inflation report, given that price gains have not eased enough for the central bank to abandon its hawkish stance,” said Ed Moya, senior market analyst at OANDA Corp.
“Today’s rise in CPI could slightly increase the likelihood of a rate hike in November and potentially delay the timing of any rate cuts deeper into 2024,” said Joe Tuckey, head of currency research at Argentex Group.
US Treasury yields were range-bound in the wake of the CPI report.
In late New York trading, the euro was unchanged at US$1.0732, and the British pound rose to US$1.2486 from US$1.2485.
The US dollar bought 147.4540 Japanese yen, higher than 147.1020 Japanese yen from the previous session. The US dollar rose to 0.8934 Swiss francs from 0.8912 Swiss francs, and it was up to 1.3564 Canadian dollars from 1.3556 Canadian dollars. The US dollar increased to 11.1379 Swedish kronor from 11.1007 Swedish kronor.