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    The dollar inched higher on Friday on Fed rate hike view

    The dollar advanced against the other major currencies on Friday as outlooks that the Federal Reserve will lift U.S. interest rates next month extended to underpin investor demand for the greenback.

    On Thursday, Federal Reserve Chair Janet Yellen, gave no indication of the timing of a potential rate hike as investors expected the release of U.S. data later in the day.
    As a result, the index ended the week down 0.16% after a rally to Tuesday’s seven-month peaks of 99.59 moved investors to take profits early in the week.

    The U.S. Department of Labor said on Friday, that the number of individuals filing for initial jobless benefits in the week ending November 7, was unchanged from a week earlier at 276,000. Analysts had expected jobless claims to fall by 6,000 to 270,000.

    Meanwhile, the Commerce Department said that the dollar shrugged off reports showing that U.S. retail sales rose less than expected in October, while producer prices fell, but also that retail sales edged up just 0.1% last month after remaining flat in the preceding two months.

    Also, the Labor Department said the producer price index fell 0.4% last month after a 0.5% decline in September. Another report showed that U.S. consumer sentiment improved this month.

    However, none of the above mentioned discourage the Fed from hiking rates in December in the wake of the robust U.S. jobs report for October. The dollar remained broadly supported after Fed Vice-Chair Stanly Fischer said Thursday that it “may be appropriate” for the Fed to begin raising rates next month.
     
    Elsewhere, the single currency was lower against the dollar, with EUR/USD down 0.39% to 1.0773 in late trade.
     
    On Friday, the dollar was little changed against the yen late Friday, with USD/JPY at 122.6, off Monday’s two-and-a-half month highs of 123.59.
     
    The dollar was higher against the Swiss franc, with USD/CHF up 0.56% to 1.0058.
     
    The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.33% to 98.90 in late trade.
     
    This week major market events are, among others, the Fed’s latest policy meeting for fresh indications on the prospects of a December rate hike on Wednesday. On Thursday, investors will be turning their attention on preliminary data on Japanese third quarter growth and a monetary policy announcement by the Bank of Japan.
     
    Finally, on Friday, the European Central Bank President Mario Draghi is to speak at the ECB event in Frankfurt.

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