[1/2]U.S. Dollar and Euro notes are seen in this June 22, 2017 illustration photo. REUTERS/Thomas White/Illustration/File Photo Acquire Licensing Rights
NEW YORK, Sept 14 (Reuters) – The dollar index surged to a six-month high on Thursday, as economic data was mostly stronger than anticipated and the European Central Bank (ECB) signaled it was likely done with its interest rate hike cycle.
U.S. retail sales increased 0.6% in August, more than the expected 0.2% rise, boosted by higher gasoline prices while weekly initial jobless claims rose to 220,000 but were below the 225,000 forecast.
Rising gasoline prices also affected the latest inflation data, as the producer price index for final demand rose 0.7% last month, more than the 0.4% estimate.
The dollar index was last up 0.64% at 105.41, just off the 105.43 level hit earlier in the day, its highest since March 9. The index was on track for its biggest one-day percentage gain in just over a week.
The euro slumped against the dollar after the ECB raised its key interest rate to a record high of 4% on Thursday but indicated this was likely to be its final move in a more than year-long fight against inflation as the euro zone economy continues to struggle. The euro was down 0.89% at $1.0635 after falling to $1.0629, its weakest since March 17 and on pace for its biggest one-day percentage fall since July 27.
“(ECB President Christine) Lagarde is hinting that this could be the last hike because she’s saying if we…
