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.