NEW YORK, Sept 14 — The US dollar soared in late trading on Tuesday, following a hotter-than-expected US inflation report.
The dollar index, which measures the greenback against six major peers, increased 1.37 per cent to 109.8150, reported Xinhua.
In late New York trading, the euro decreased to US$0.9979 from US$1.0120 in the previous session, and the British pound was down to US$1.1503 from US$1.1679 in the previous session. The Australian dollar decreased to US$0.6738 from US$0.6881.
The US dollar bought 144.37 Japanese yen, higher than 142.74 Japanese yen of the previous session.
The US dollar was up to 0.9607 Swiss francs from 0.9540 Swiss francs, and it rose to 1.3154 Canadian dollars from 1.2984 Canadian dollars.
The US Labour Department reported Tuesday that the country’s consumer price index (CPI) rose 0.1 per cent in August for an 8.3 per cent year-on-year increase. The core CPI, which excludes food and energy, rose 0.6 per cent for a 6.3 per cent year-on-year increase. The readings were higher than market expectations.
“The August CPI shows the limiting impact of falling gasoline prices on overall inflation, and that price pressures remain high and broad-based,” Will Compernolle, senior economist at FHN Financial, said Tuesday in a note, adding the data cemented another big rate hike by the Federal Reserve.
