LONDON/NEW YORK, Nov 10 (Reuters) – The dollar rose against major peers on Wednesday, snapping three days of weakness, after U.S. consumer prices surged at their highest rate since 1990 and fuelled fears inflation could prove stickier than Federal Reserve expectations.
The consumer price index rose 0.9% last month after gaining 0.4% in September and in the 12 months through October, the consumer price index accelerated 6.2%. the U.S. Labor Department said on Wednesday, while analysts expected on average the rise to be limited to 5.8%. read more
The Fed last week restated its belief that the current inflation surge is transitory, but many investors fear that underestimating price increases could prove to be a costly policy mistake.
At 1002 EDT (1502 GMT), the dollar index , which measures the greenback against six major currencies, was up 0.31% at 94.2470 after reaching a high of 94.440 immediately after the data was released.