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Dollar Turns Mixed Against Major Counterparts

The U.S. dollar is turning in a mixed performance against its major counterparts on Friday, after having climbed higher earlier in the day after hot inflation data raised expectations that the Federal Reserve will keep its monetary policy tight for longer.

Data from the Labor Department on Thursday showed that the consumer price index climbed by 0.4% in September after increasing by 0.6% in August. Economists had expected consumer prices to rise by 0.3%.

The report also said the annual rate of consumer price growth was unchanged at 3.7%, while the annual rate of core consumer price growth slowed to 4.1% in September from 4.3% in August.

In U.S. economic news today, the University of Michigan said its consumer sentiment index tumbled to 63.0 in October from 68.1 in September, while economists had expected the index to edge down to 67.4.

Assessments of personal finances declined about 15%, primarily on a substantial increase in concerns over inflation, and one-year expected business conditions plunged about 19%,” said Surveys of Consumers Director Joanne Hsu.

The report also showed a sharp increase in year-ahead inflation expectations, which jumped to 3.8% in October from 3.2% in September, reaching the highest level since May.

The dollar’s rise was also due to investors’ preference for the safe-haven currency amid rising geopolitical concerns.

The dollar index climbed to 106.79 after having dropped to 106.29 in the Asian session. The index is currently at 106.68, up marginally from the previous close.

The dollar is up against the Euro at 1.0508. Against Pound Sterling, the dollar has firmed to 1.2135 from 1.2174.

Against the Japanese currency, the dollar is weak, fetching 149.56 yen, down from the previous close of 149.81 yen.

The dollar is up against the Aussie at 0.6296, and weak against Swiss franc at CHF 0.9025. Against the Loonie, the dollar is down at C$ 1.3663

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