Dollar edges higher against Swiss franc after US inflation data

On September 11, the U.S. dollar experienced a slight increase against the euro and Swiss franc following US inflation data. This data indicated a rise in consumer prices, suggesting that the Federal Reserve may raise interest rates next week. Initially, the dollar gained strength after the data release. However, investor confidence remained uncertain due to Iran's escalating conflict, which caused oil prices to rise, slightly restraining the U.S. currency's progress and keeping it nearly unchanged compared to its counterparts.

According to the Labor Department, the US Consumer Price Index rose by 0.4% in August, following a 0.1% increase in July. Similarly, the core CPI increased by 2.4% year-on-year in August compared to the 2.5% rise in July.

Despite oil prices falling, they remained above $100 per barrel, while diesel prices hit record highs. This indicates that inflation is likely to remain elevated and spread. The Brent crude oil prices dipped by 2.81% to $104.61 per barrel. The dollar index, which gauges the greenback's performance against a group of currencies, such as the yen and euro, remained stable at 99.12, with a projected 0.16% decline for the week - its second weekly loss.

Meanwhile, the yen showed a second consecutive weekly gain against the dollar, up by 0.45% to 153.69 per dollar. The Bank of Japan is anticipated to raise interest rates next week and may signal a more aggressive pace of tightening if pressures from rising prices increase the risk of inflation surpassing its target.