The dollar was edging higher, recovering only slightly from declines on Thursday when data showed further evidence that the labor market is cooling and inflation remains elevated.
U.S. inflation rose to 2.9% in August as expected by economists in a WSJ survey. Initial jobless claims rose more than expected to 263,000 last week, the highest since 2021.
Despite higher inflation, the market took this as an opportunity to continue betting on significant interest-rate cuts by the Federal Reserve in coming months, Commerzbank’s Michael Pfister said in a note.
