Dollar edges higher against euro after US inflation data

On September 11, the U.S. dollar experienced a slight upward trend against the euro and Swiss franc following the release of U.S. inflation data. The Consumer Price Index rose by 0.4% in August, compared to 0.1% in July, while the core CPI increased by 2.4% year-on-year in August, up from 2.5% in July. Despite the data indicating a potential rise in interest rates, the dollar's gains were limited due to an escalating Iran war and rising oil prices, which kept the U.S. currency from advancing significantly.

Meanwhile, the euro declined by 0.13% to $1.15950, heading for a weekly loss. The dollar strengthened by 0.47% to 0.817 against the franc, marking its third straight weekly gain. Analysts noted that core CPI's acceleration suggested higher interest rates were increasingly likely, with markets pricing in an 86% chance of a 25 basis-point hike at the Federal Reserve's next meeting.