U.S. Dollar Climbs As Inflation Meets Forecasts

(RTTNews) - The U.S. dollar erased its losses against its major counterparts in the New York session on Tuesday, as inflation inched up in line with estimates in November.

Data from the Labor Department showed that the consumer price index crept up by 0.1 percent in November after coming in unchanged in October. The uptick matched expectations.

Excluding food and energy prices, core consumer prices rose by 0.3 percent in November after edging up by 0.2 percent in October. The increase in core prices also came in line with estimates.

On an annual basis, inflation slowed to 3.1 percent from 3.2 percent in the previous month. The rate matched matched expectations.

Core inflation was unchanged at 4.0 percent in November, as expected.

The Federal Reserve is expected to hold borrowing costs unchanged when it ends its last meeting of the year on Wednesday.

The central bank will release the revised Summary of Economic Projections, which is expected to provide clues about the timing of a policy shift.

The greenback rebounded to 145.81 against the yen, 0.8780 against the franc and 1.0767 against the euro, from an early 4-day low of 144.72 and 1-week lows of 0.8720 and 1.0827, respectively. The currency is poised to find resistance around 153.00 against the yen, 0.90 against the franc and 1.06 against the euro.

The greenback bounced off to 0.6107 against the kiwi, up from an early 4-day low of 0.6169. The greenback may find resistance around the 0.59 level.

The greenback climbed to a 4-day high of 1.2518 against the pound, off an early 1-week low of 1.2615. The next possible resistance for the greenback is seen around the 1.23 level.

The greenback jumped to 5-day highs of 1.3616 against the loonie and 0.6542 against the aussie, reversing from an early 1-week low of 1.3544 and a 4-day low of 0.6612, respectively. The greenback is seen finding resistance around 1.40 against the loonie and 0.63 against the aussie.