Investing.com - The dollar moved higher against the other major currencies on Friday, boosted by better-than-expected U.S. inflation data, although gains were expected to remain limited ahead of the Federal Reserve’s policy meeting next week.
EUR/USD slid 0.38% to 1.1202, the lowest since September 9.
The U.S. Commerce Department said the consumer price index rose 0.2% in August, compared to expectations for a 0.1% gain and after a flat reading the previous month.
Year-over-year, consumer prices increased 1.1%, above expectations for a gain of 1.0%.
Core CPI, which excludes food and energy costs, increased by 0.3% last month, above forecasts for a 0.2% rise and after a 0.1% advance in July.
The report came after weak U.S. retail sales on Thursday dampened expectations for a U.S. rate hike this month.
GBP/USD declined 0.65% to 1.3154.
The pound remained under pressure after the Bank of England kept monetary policy on hold on Thursday, but indicated that it could cut interest rates again as soon as November unless the economy picks up.
USD/JPY held steady at 102.08, while USD/CHF gained 0.42% to trade at 0.9758.
The Australian and New Zealand dollars were weaker, with AUD/USD down 0.29% at 0.7496 and with NZD/USD sliding 0.30% to 0.7293.
Elsewhere, USD/CAD climbed 0.55% to trade at 1.3164, the highest since July 27.
Statistics Canada reported on Friday that manufacturing sales rose 0.1% in July, disappointing expectations for an increase of 1.0% and after a 0.8% gain in June.
The commodity currencies were hit by tumbling oil prices on Friday due to reports that Iran's August crude oil exports jumped 15% to a five-year high of more than 2 million barrels per day, sparking fresh concerns over a global supply glut.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.39% at 95.64, just off a one-and-a-half week high of 95.68 hit earlier in the session.