Dollar hikes against euro, yen after surprisingly firm U.S. consumer prices

The dollar hiked toward the euro, and yen other currencies on Tuesday. This is come after stronger-than-expected U.S. inflation data, which suggested the Fed need to stay aggressive in raising interest rates.

The dollar index inched up 1.1 percent at 109.39, heading back toward last week’s two-decade peak of 110.79.

The euro, pound and yen all lowered, with the euro last down 1 percent versus the greenback to $1.0016, after hitting a nearly one-month high of $1.0198 in the previous session.

U.S. consumer prices unexpectedly rose in August and underlying inflation picked up amid rising costs for rents and healthcare, according to the Labor Department report.

“The data was far stronger than expected. Particularly worrisome is the fact that core inflation came in almost double estimates,” chief market strategist at Corpay in Toronto Karl Schamotta stated.

The dollar had eased in recent sessions after its strong run higher.

Against the yen, the dollar edged up 0.9 percent at 144.095.

Sterling inched lower against the dollar as well. The pound edged down 1.2 percent at $1.1544.