Dollar rises against major currencies after strong US inflation data

The US dollar strengthened against major currencies on Thursday following the release of inflation data that surpassed market estimates.

Figures from the US Department of Labor showed the Consumer Price Index rose by 0.4% last month.

The data reinforced expectations that the Federal Reserve may raise borrowing costs at its meeting next month.

The dollar extended its gains against a basket of currencies after the report, while the yield on two-year US Treasury notes jumped 19.07 basis points to 4.738%.

The euro fell 0.48% to $1.117, while the dollar climbed 0.47% against the Japanese yen to 158.66 yen, and rose 0.89% against the Swiss franc to 0.8251 francs.