Dollar Turns In Mixed Performance Against Major Counterparts

(RTTNews) - The U.S. dollar climbed higher Friday morning on hopes the Fed will rise continue to raise rates aggressively after data from the Commerce Department showed the core personal consumption expenditure price index increased more than expected.

However, the greenback pared gains subsequently and shed ground against some of its major counterparts as the day progressed.

Data showed the Fed's preferred inflation indicator, the Personal Consumption Expenditure index, surged 6.2% in the year to August after rising 6.3% in the 12 months to July.

The Commerce Department's report also showed the annual rate of core consumer price growth accelerated to 4.9% in August from a revised 4.7% in July.

Economists had expected the annual rate of growth in core consumer prices, which exclude food and energy prices, to tick up to 4.7% from the 4.6% originally reported for the previous month.

Meanwhile, the University of Michigan released a separate report showing one-year inflation expectations edged down to 4.7% in September from 4.8% in August, hitting the lowest level since last September.

A report from MNI Indicators showed an unexpected contraction in Chicago-area business activity in the month of September.

The dollar index, which climbed to 112.67 after having slipped to 111.58 in the Asian session, pared gains subsequently and was last seen at 112.15, down 0.1% from the previous close.

Against the Euro, the dollar firmed to 0.9735 before dropping to 0.9808, recording a marginal loss. Data from Eurostat showed that Eurozone inflation touched a new record high in September, rising to 10% in the month, from 9.1% in August.

The data cemented expectations for another 75 basis point rate hike by the ECB in October.

The dollar strengthened to $1.1025 against Pound Sterling, but weakened to $1.1154 later.

Against the Japanese currency, the dollar is stronger, fetching 144.78 yen a unit, compared with 144.42 yen on Thursday.

The dollar is up sharply against the Aussie at 0.6398, firming from 0.6502. Against the Loonie, the dollar rose to 1.3805.