New York, May 1 (IANS) The US dollar traded higher against other major currencies as inflation neared the US Federal Reserve’s target, potentially signalling a faster increase in US interest rates.
In late New York trading on Monday, the euro was down to $1.2081 from $1.2123 in the previous session, and the British pound decreased to $1.3749 from $1.3784 in the previous session, Xinhua news agency reported.
The Australian dollar decreased to $0.7529 from $0.7581.
The US dollar bought 109.29 Japanese yen, higher than 109.03 Japanese yen of the previous session. The US dollar rose to 0.9907 Swiss franc from 0.9879 Swiss franc, and it increased to 1.2841 Canadian dollars from 1.2834 Canadian dollars.
The US personal consumption expenditures (PCE) price index, excluding food and energy, a key inflation gauge preferred by the Federal Reserve, rose 1.9 per cent in the 12 months through March, according to data released by the US Department of Commerce on Monday.
The figure nearly matched the Fed’s 2 per cent target.
Meanwhile, the US personal income and spending rose 0.3 per cent and 0.4 per cent respectively in March, the same filing said.
The uptick in inflation came a day before the Federal Reserve two-day policy meeting that begins on Tuesday.
Analysts expected the Fed to keep rates on hold when they conclude their meeting on Wednesday, but the rate setters could signal they are ready to hike in June.
The dollar index, which measures the greenback against six major peers, increased 0.31 per cent at 91.828 in late trading.