Dollar gains after inflation data suggest more hawkish Fed
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
- Rockwell Automation (ROK) Said to Attract Takeover Interest from Schneider Electric - Source
- British American Tobacco Offers to Acquire Remaining Shares of Reynolds American (RAI) for $56.50/Share
Four thousand U.S. dollars are counted out by a banker counting currency at a bank in Westminster, Colorado November 3, 2009. REUTERS/Rick Wilking/File Photo
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
By Sam Forgione
NEW YORK (Reuters) - The U.S. dollar hit a more than two-week high against a basket of major currencies on Friday after U.S. inflation data boosted bets the Federal Reserve would raise interest rates in December, and touched a one-month high against sterling on worries over Britain's Brexit vote.
The U.S. Labor Department said its Consumer Price Index rose 0.2 percent last month. In the 12 months through August, the CPI increased 1.1 percent. The figures beat expectations of economists polled by Reuters.
Traders' expectations of a rate hike from the Fed at its meeting next week rose slightly to 15 percent from 12 percent on Thursday, according to CME Group's FedWatch program, while expectations for December rose to nearly 52 percent from just over 47 percent.
The inflation data suggested a greater probability of a December move from the U.S. central bank and a quicker pace of rate increases next year, analysts said.
"It’s lining up nicely for the Fed to tie a bow on this year and give us that 25 basis point hike just before the holidays," said Stephen Casey, senior foreign exchange trader at Cambridge Global Payments in New York.
The dollar index, which measures the greenback against a basket of six major currencies, rose 0.8 percent to 96.063 <.DXY>. The euro
Sterling hit a one-month low against the dollar of $1.3001
Hammond said in mid-July that Britain would leave the single market as a result of its decision to leave the EU. Britain voted to exit the EU on June 23.
"It’s just a sign that Brexit comes at a cost," said Vassili Serebriakov, FX strategist at Credit Agricole in New York.
The dollar was last up just 0.25 percent against the yen at 102.35 yen
The dollar index was on track to post its best week in three, with a gain of about 0.8 percent, but the greenback was set for its second straight weekly loss against the yen, of about 0.3 percent.
(Reporting by Sam Forgione; Editing by James Dalgleish and Meredith Mazzilli)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Speculators boost U.S. dollar bets to nine month-high: CFTC, Reuters
- Fed Beige Book Says Job Market Tight; Outlooks Mostly Positive
- Iraqi army tries to take main Christian town near Mosul
Create E-mail Alert Related CategoriesForex, Reuters
Related EntitiesCredit Agricole
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!