Dollar gains as US posts modest uptick in inflation

dollarNEW YORK: The dollar gained on international currency markets Friday as an inflation indicator showed strength and investors anticipated next week’s decisions on US and Japanese monetary policy.

The British pound dropped sharply in relation to the dollar, coinciding with reports on Friday that Britain expected to begin formal talks to secede from the European Union by early next year.

The US consumer price index rose 0.2 percent for the month of August and was up 1.1 percent over 12 months.

Around 2100 GMT, the euro was worth $1.1156, down from $1.1244 the day before while the dollar bought 102.27 yen, down from 102.10. The pound fell to $1.3004 from $1.3240 on Thursday.

Central bankers in Washington and Tokyo are due to begin two-day meetings beginning Tuesday to review monetary policy, issuing decisions to which markets are keenly attuned.

“The CPI numbers helped the dollar,” said Vassili Serebriakov of Credit Agricole. “I don’t think they are really rethinking the Fed.”