Investing.com - The dollar rose to session highs against the euro and the yen on Tuesday after data showed that U.S. consumer prices rose in line with expectations in July, reinforcing the view that the economic recovery is on track.
During European afternoon trade, the dollar hit session highs against the euro, with EUR/USD down 0.12% to 1.3239.
The Department of Labor said consumer prices rose by a seasonally adjusted 0.2% in July, in line with forecasts.
Core consumer prices, excluding food and energy costs, also rose 0.2%, matching forecasts.
A separate report showed that the number of people who filed for unemployment assistance in the U.S. fell to the lowest level since January 2008 last week, dropping by 15,000 to 320,000.
The data reinforced the view that the economic recovery is strong enough for the Federal Reserve to start phasing out its stimulus program later this year.
The dollar erased losses against the yen, with USD/JPY rising 0.41% to 98.52.
The yen firmed up earlier after Japan’s Finance Minister Taro Aso played down reports of a corporate tax cut on Thursday, saying it would not have any immediate impact on the economy.
The pound pulled back from two-month highs against the dollar, with GBP/USD up 0.20% to 1.5528, off highs of 1.5594.
Sterling strengthened earlier after official data showed that U.K. retail sales rose much more strongly than expected in July, fuelling optimism over the economic recovery.
U.K. retail sales climbed 1.1% in July, beating expectations for a 0.6% gain and were 3% higher from a year earlier as sunnier summer weather boosted sales of food, alcohol, clothing and outdoor items.
The dollar rose to session highs against the Swiss franc, with USD/CHF gaining 0.33% to trade at 0.9386.
The greenback erased losses against its Australian, New Zealand and Canadian counterparts, with AUD/USD falling 0.26% to 0.9095, NZD/USD up just 0.01% to 0.8027 and USD/CAD edging up 0.08% to 1.0348.
The New Zealand dollar rallied earlier after a report showed that the Business New Zealand manufacturing index rose to 59.5 in July, from a reading of 54.7 the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.23% to 81.92.
The U.S. was to release data on industrial production and a manufacturing report from the Philly Fed later in the trading day.
During European afternoon trade, the dollar hit session highs against the euro, with EUR/USD down 0.12% to 1.3239.
The Department of Labor said consumer prices rose by a seasonally adjusted 0.2% in July, in line with forecasts.
Core consumer prices, excluding food and energy costs, also rose 0.2%, matching forecasts.
A separate report showed that the number of people who filed for unemployment assistance in the U.S. fell to the lowest level since January 2008 last week, dropping by 15,000 to 320,000.
The data reinforced the view that the economic recovery is strong enough for the Federal Reserve to start phasing out its stimulus program later this year.
The dollar erased losses against the yen, with USD/JPY rising 0.41% to 98.52.
The yen firmed up earlier after Japan’s Finance Minister Taro Aso played down reports of a corporate tax cut on Thursday, saying it would not have any immediate impact on the economy.
The pound pulled back from two-month highs against the dollar, with GBP/USD up 0.20% to 1.5528, off highs of 1.5594.
Sterling strengthened earlier after official data showed that U.K. retail sales rose much more strongly than expected in July, fuelling optimism over the economic recovery.
U.K. retail sales climbed 1.1% in July, beating expectations for a 0.6% gain and were 3% higher from a year earlier as sunnier summer weather boosted sales of food, alcohol, clothing and outdoor items.
The dollar rose to session highs against the Swiss franc, with USD/CHF gaining 0.33% to trade at 0.9386.
The greenback erased losses against its Australian, New Zealand and Canadian counterparts, with AUD/USD falling 0.26% to 0.9095, NZD/USD up just 0.01% to 0.8027 and USD/CAD edging up 0.08% to 1.0348.
The New Zealand dollar rallied earlier after a report showed that the Business New Zealand manufacturing index rose to 59.5 in July, from a reading of 54.7 the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.23% to 81.92.
The U.S. was to release data on industrial production and a manufacturing report from the Philly Fed later in the trading day.