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.
More than 75% traders expect the Fed to raise rates in December, according to Investing.com's Fed Rate Monitor tool.
The dollar's bullish end to the week was helped by weakness in sterling, as traders fretted over the progress of getting a potential Brexit-deal agreement approved by parliament amid turmoil in UK Prime Minister Theresa May's government.
Jo Johnson, a junior transport minister, resigned on Friday and rebuked Prime Minister Theresa May's "delusional" Brexit negotiations.
Investor jitters on Wall Street returned, meanwhile, to help support demand for the safe-haven yen, keeping a lid somewhat on gains in the greenback.
USD/JPY fell 0.25% to Y113.78.
USD/CAD, meanwhile, rose 0.50% to C$1.3221 as the loonie was pressured by a slump in oil prices deeper into bear-market territory.
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