The U.S. dollar fell against the euro Thursday after a government report showed that consumer prices rose in January, The Associated Press reports.
The Consumer Price Index rose 0.4 percent last month, the Labor Department said, as food and gas costs increased. Economists expect consumer prices, outside of food and energy, to increase this year as more companies pass on their rising costs to consumers.
The euro rose to $1.3595 during midday trading Thursday, from $1.3567 late Wednesday. The British pound rose to $1.6172 from $1.6092 Wednesday.
The dollar index, which compares the U.S. dollar against six currencies fell 0.30 percent Thursday.
“Risk appetite is increasing and that is leading to some dollar selling,” said Brian Dolan, chief currency strategist at Forex.com.
In other economic news Thursday, the Conference Board’s index of leading economic indicators edged up 0.1 percent, the seventh straight month of growth.
Also weighing on the dollar, Dolan said, was news that Iran was seeking permission to pass two navy vessels through the Suez Canal. Investors were concerned about a possible “confrontation” between Iran and Israel as the story continues to develop Thursday, Dolan said.
In other trading Thursday, the U.S. dollar fell to 83.30 Japanese yen from 83.56 yen Wednesday and fell to 0.9514 Swiss franc from 0.9592. The U.S. currency also dropped to 98.43 Canadian cents from 98.56 Canadian cents.
