Dollar rises, investors await key inflation data
The dollar was up in early European trade on Friday, on track for its best week since June.
The U.S. Dollar Index that measures the greenback against other major currencies climbed 0.1% to 94.315 by 2:55 AM ET (0755 GMT).
The USD/JPY pair declined 0.1% to 111.16, and the EUR/USD pair dropped to 1.1579.
The GBP/USD pair shed 0.2% to 1.3449, while the risk sensitive AUD/USD pair nudged 0.4% lower to 0.7198.
Foreign currency dealers have started preparing for the Federal Reserve’s asset tapering in November and interest rate hikes in the second half of 2022.
On Wednesday, Fed Chairman Jerome Powell said addressing the “tension” between rising inflation and still-high unemployment is the most pressing problem for the central bank at the moment.
Investors now await the core personal consumption expenditures price index, an inflation measure the Fed uses to set policy.
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