Investing.com – The dollar remained near a 10-week high on Monday as the Federal Reserve’s preferred inflation measure rose, increasing chances of a rate increase.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.27% to 96.62 as of 11:14 AM ET (15:14 GMT).
The Fed’s preferred inflation measure, the personal consumption expenditures (PCE) price index, rose 0.2% in September. The data bolsters expectations that the central bank will raise rates in December.
Chances of a rate hike were priced in at 77.1%, according to Investing.com’s Fed Rate Monitor Tool.
The euro fell amid ongoing political tensions between Italy and the European Commision and news that German Chancellor Angela Merkel will not seek re-electionas the chair of the Christian Democratic Union (CDU) party. Merkel’s coalition party suffered a setback in regional German elections on Sunday.
EUR/USD fell 0.19% to 1.1380, not far from a session low of 1.1366.