FOREX-Dollar strengthens after US inflation data boosts Fed rate-hike expectations

The dollar strengthened against major ‌currencies on Tuesday after hotter-than-expected US inflation data bolstered expectations that the Federal Reserve would ‌raise interest rates next month. Data ‌from the US Labor Department showed that the Consumer Price Index increased 0.4% last ⁠month, ​exceeding ⁠the consensus forecast of a 0.3% gain in ⁠a Reuters poll of economists.

The dollar ​extended its gains against a basket ⁠of currencies after the report. The euro was down ⁠0.33% ​against the dollar at $1.1186. The dollar gained 0.39% to ⁠158.54 against the Japanese yen. Against the Swiss ⁠franc, ⁠the dollar rose 0.41% to 0.823 franc.