Dollar Gains as Inflation Data Favors Rate Hike

The US dollar edged higher against major peers on Friday following inflation data that showed consumer prices increased in August. According to Labor Department data, the US consumer price index rose 0.4% in August after a 0.1% increase in July.

In the 12 months through August, consumer inflation advanced 3.4%, matching the same margin in July. The dollar strengthened against several currencies before giving back some gains immediately after the data was released.

The euro fell by 0.07% to $1.1602, while the dollar rose 0.2% to 0.814 against the Swiss franc.