© Reuters. The dollar rose on Friday.
Investing.com – The dollar rose against its rivals Friday and remained set for a fourth-straight weekly gain as data pointing to a pickup in inflation fuelled investor expectations for further rate hikes.
The , which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.07% to 96.15.
The Labor Department said on Friday its (PPI) for final demand increased 0.6% last month, after rising just 0.2% in September. In the 12 months through August, the PPI rose 2.4% after rising 2.9% in October.
“Whether this (PPI) is capturing tariffs, rising wages, or simply a hot economy, it joins the wage series from the last payrolls report in adding to hints that growth is finally starting to translate into price momentum,” CIBC said in a note.
The strong uptick in wholesale prices comes just days after the Federal Reserve said Wednesday that inflation remained close to target and signaled a willingness to continue raising rates, with the next widely expected at year-end.
More than 75% traders expect the Fed to raise rates in December, according to Investing.com’s .
The dollar’s bullish end to the week was helped by weakness in sterling, as traders fretted over the progress of getting a potential Brexit-deal agreement approved by parliament amid turmoil in UK Prime Minister Theresa May’s government.
Jo Johnson, a junior transport minister, resigned on Friday and rebuked Prime Minister Theresa May’s “delusional” Brexit negotiations.
fell 0.67% to $1.2975, while fell 0.27% 1.1333.
Investor jitters on Wall Street returned, meanwhile, to help support demand for the safe-haven yen, keeping a lid somewhat on gains in the greenback.
fell 0.25% to Y113.78.
, meanwhile, rose 0.50% to C$1.3221 as the loonie was pressured by a slump in oil prices deeper into bear-market territory.
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