WASHINGTON (dpa-AFX) - The U.S. dollar advanced against most of its major rivals on Thursday, extending gains from the previous session, amid expectations that rising inflation might prompt the Federal Bank to start raising interest rates sooner than earlier thought.
The data released by the Labor Department on Wednesday showed consumer price index jumped by 0.9% in October after rising by 0.4% in September. Economists had expected consumer prices to climb by 0.6%.
The data said the annual rate of growth in consumer prices accelerated to 6.2% in October from 5.4% in September, reaching the highest level since November of 1990.
The annual rate of growth in core prices also accelerated to 4.6% from 4%, reflecting the biggest jump in prices since August of 1991.
The acceleration in the rate of consumer price inflation has raised the possibility of the Federal Reserve hiking rates by mid 2022, although the bank said recently that it will not be in a hurry to begin raising rates.
The dollar index climbed to 95.20, a 16-month high, and gaining nearly 0.4% in the process.
Against the Euro, the dollar firmed to 1.1450 from 1.1480.
The dollar strengthened to 1.3365 against Pound Sterling, firming from above 1.3400.
The dollar traded at 114.10 yen, gaining around 0.30 points.
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