LONDON/SINGAPORE—The dollar rose on Wednesday in the wake of stubbornly high U.S. inflation data and firm words on interest rates from Federal Reserve officials.
U.S. consumer price index (CPI) inflation accelerated month-on-month in January, rising 0.5 percent as expected, due in part to higher rental and food costs.
Year-on-year, prices rose 6.4 percent. That was down from 6.5 percent in December but above economists’ expectations of 6.2 percent.
The dollar climbed against most major currencies on Wednesday, with the euro down 0.14 percent to $1.072. The euro touched a 10-month high of $1.103 on Feb. 2 but has since slipped.
“It is a reaction to the CPI data, and also the tone of Fed officials recently,” said Jane Foley, head of FX strategy at Rabobank….