US Dollar Holds Steady After CPI Data Briefly Pushes It to Intraday High

The dollar gave back gains on Friday after data showed U.S. core consumer prices rose more than expected, prompting traders to increase bets on a Federal Reserve rate hike next week. According to Sina Finance, the Bloomberg Dollar Spot Index was little changed after touching an intraday high following the inflation release. A key U.S. consumer price gauge rose more than expected last month, reinforcing the case for a rate increase by Fed officials next week. More Wall Street firms, including TD Securities and MUFG, have begun backing the view that a near-term hike is likely, while swap traders now see about a 90% chance of a rate increase at next week’s Fed meeting. Economists expect the Bank of Japan to raise its benchmark rate next week and to hike again by January, with policy normalization likely to accelerate. USD/CAD rose 0.2% to 1.3863, while EUR/USD fell 0.1% to 1.1599 and GBP/USD rose 0.1% to 1.3528.