Forex – U.S. Dollar Steady as Inflation Data Points to Fed Hike

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© Reuters. The U.S. dollar was slightly higher on Friday. © Reuters. The U.S. dollar was slightly higher on Friday.

Investing.com – The dollar was steady against other currencies on Friday as inflation numbers supported continued rate hikes from the Federal Reserve.

The , which measures the greenback’s strength against a basket of six major currencies, inched up 0.01% to 96.56 as of 10:23 AM ET (15:23 GMT), not far from over a one-week high.

The dollar fell against the Japanese yen, with down 0.28% 113.74. The Canadian dollar was lower, with rising 0.27% to 1.3189.

The producer price index increased 0.6% in October, while core PPI rose by 0.5% from a month earlier.

Core PPI is a key gauge of underlying producer price pressures that excludes food and energy costs.

The higher-than-expected numbers support the Fed’s gradual rate increase policy, which helped boost the greenback. The Fed held interest rates steady on Thursday, as expected, but remained on track to continue gradually raising interest rates.

The central bank hiked U.S. interest rates three times this year and is widely expected to do so again in December.

Meanwhile, the University of Michigan’s consumer sentiment fell to 98.3 from 98.6 in the prior month.

The euro and sterling were pushed lower by the stronger dollar.

fell 0.11% to 1.1351, while the pound was volatile over Brexit uncertainty. was down 0.11% to 1.3048.

Elsewhere, the inched down 0.01% to 0.6754, while lost 0.15% to 0.7246.

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