WASHINGTON (dpa-AFX) - The U.S. dollar climbed higher on Wednesday, scoring gains against its major counterparts, as hopes of an interest rate cut by the Federal Reserve in June faded a bit after data showed U.S. consumer prices rose more than expected in March.
Data from the Labor Department showed U.S. consumer prices advanced by slightly more than expected in the month of March, climbing by 0.4%, matching the increase seen in February. Economists had expected consumer prices to rise by 0.3%.
The report also said the annual rate of consumer price growth accelerated to 3.5% in March from 3.2% in February. Economists had expected a more modest acceleration to 3.4%.
Meanwhile, the annual rate of core consumer price growth came in at 3.8% in March, unchanged from February. Core price growth was expected to slow to 3.7%.
The data has added to recent worries the Federal Reserve will hold off on lowering interest rates amid ongoing inflation concerns.
Fed officials have repeatedly said they need greater confidence inflation is slowing before they consider cutting rates.
The minutes of the central bank's latest monetary policy meeting revealed Fed officials were already not convinced inflation is moving sustainably down to 2% after January and February readings on core and headline inflation had been firmer than expected.
The dollar index climbed to 105.30 but eased subsequently to 105.19, still up as much as 1% from the previous close.
Against the Euro, the dollar firmed to 1.0743, gaining more than 1% from 1.0857. The dollar strengthened to 1.2540 against Pound Sterling, from 1.2679 a unit of the British currency.
Against the Japanese currency, the dollar rose to 153.13 yen from 151.79 yen. The dollar firmed to 0.6512 against the Aussie. The Swiss franc weakened to 0.9126 a dollar from 0.9035. The dollar gained against the Loonie, fetching C$ 1.3682 a unit.
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