Dollar climbs against euro as US inflation rate increases

The dollar climbed to a seven-month high against the euro as the rate of US inflation increased in October, fuelling speculation the Federal Reserve will raise interest rates from near zero as soon as next month.

It strengthened for a third day against the euro as a separate report showed factory output increased in October for the first time in three months.

The euro dropped versus most of its major peers as ECB executive board member Peter Praet said policymakers see a risk that investors and consumers will lose faith in officials’ projections for reviving inflation.