Forex – Dollar Eyes Fourth-Straight Weekly Gain; Sterling Extends Losses

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Investing.com – The dollar rose against its rivals Friday and remained set for a fourth-straight weekly gain as data pointing to a pickup in inflation fuelled investor expectations for further rate hikes.

The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.07% to 96.15.

The Labor Department said on Friday its producer price index (PPI) for final demand increased 0.6% last month, after rising just 0.2% in September. In the 12 months through August, the PPI rose 2.4% after rising 2.9% in October.

“Whether this (PPI) is capturing tariffs, rising wages, or simply a hot economy, it joins the wage series from the last payrolls report in adding to hints that growth is finally starting to translate into price momentum,” CIBC said in a note.

The strong uptick in wholesale prices comes just days after the Federal Reserve said Wednesday that inflation remained close to target and signaled a willingness to continue raising rates, with the next widely expected at year-end.

Read more at : https://www.investing.com/news/forex-news/forex–dollar-eyes-fourthstraight-weekly-gain-sterling-extends-losses-1682524

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