The US dollar posted modest gains against major currencies on Friday after data showed an acceleration in consumer prices, strengthening expectations that the Federal Reserve could tighten monetary policy at its meeting next week.
US Labor Department figures showed that the Consumer Price Index increased 0.4% in August, compared with a 0.1% rise in July.
On a year-over-year basis, consumer inflation stood at 3.4% in August, unchanged from the previous month.
The dollar initially gained against the euro and Swiss franc following the inflation report before paring some of its advances. The euro slipped 0.07% to $1.1602, while the dollar gained 0.2% against the Swiss franc to 0.814 francs.
