Dollar gains versus euro after inflation data

American economic data confirmed that the Consumer Price Index rose by 0.4% in August, after a 0.1% increase in July, leading to a rise in the annual inflation rate to 3.4%. This data reinforced expectations that the Federal Reserve (the U.S. central bank) would raise interest rates at the upcoming meeting. As a result, the dollar increased by 0.2% against the Swiss franc and declined by 0.07% against the euro, with the market showing a direct response to the rising inflation and monetary policy needs.