Dollar Edges Higher Against Euro and Swiss Franc After Inflation Data

The US dollar rose against the euro and Swiss franc on Friday after data showed a rise in consumer prices, increasing expectations that the Federal Reserve will raise interest rates next week.

The Labor Department reported that the Consumer Price Index increased 0.4% in August, following a 0.1% gain in July. Core CPI rose 2.4% year-on-year in August after rising 2.5% in July.

Juan Perez, director of trading at MonexUSA, said 'The main thing we're looking at is core CPI, which seems to be accelerating.' He added that this would increase the interest rate probability or odds that the Federal Reserve will raise rates at their next meeting.