The dollar rose on Friday after a slightly bigger increase in U.S. producer prices in July lifted Treasury yields higher even as speculation grows that the Federal Reserve is at the end of hiking interest rates.

Rebounding cost of services at the fastest pace in nearly a year pushed the Producer Price Index higher and unsettled traders who also saw the yen cross the 145-for-$1 threshold that triggered Japanese intervention in September 2022.

The PPI for final demand rose 0.3%, the Labor Department said, as data for June was revised lower to show the PPI unchanged, instead of rising by a previously reported 0.1%.

In the 12 months through July, the PPI rose 0.8% after a 0.2% gain the prior month. The PPI was forecast to climb 0.2% on the month and advance 0.7% year-over-year, a Reuters poll of economists showed.

The PPI for services increased 0.5%, the biggest gain since last August, because it contains the volatile retailer and wholesaler margins component, said Thierry Wizman, global FX and currencies strategist at Macquarie in New York.

The dollar index , a measure of the greenback against six peers, rose 0.21% as it headed to a fourth straight week of gains, up about 2.9% after bouncing off a 15-month low in mid-July on signs of a resilient U.S. labor market.

The stronger dollar led the yen to briefly touch 145.03 in late afternoon trade, its highest since June 30.

The dollar was last at 144.95 yen, up 0.15% on the day.

Meanwhile, sterling rose for the first time in four days after data showed the British economy grew more than expected in June, allaying some concern about the impact of high inflation and high rates on activity.

The pound was last trading at $1.2694, up 0.15% on the day, but was still heading for a fourth weekly drop.

Elsewhere on Friday the euro slid 0.3% to $1.0946 and the dollar fell 0.06% against the Swiss franc .

Source : Reuters