U.S. Dollar Higher On Fed Rate Hike Odds

(RTTNews) - The U.S. dollar appreciated against its major counterparts in the European session on Friday, on expectations that the Federal Reserve will stick to its aggressive policy tightening path in the coming months.

Higher-than-expected U.S. inflation data raised the possibility of an aggressive policy tightening in the subsequent meetings this year.

Markets are fully pricing in a fourth consecutive 75 basis-point rate hike by the Fed in November.

In the U.K., Prime Minister Liz Truss appointed Jeremy Hunt as the finance minister following the resignation of Kwasi Kwarteng.

Geopolitical concerns eased after Russian President Vladimir Putin said that the "partial mobilisation" would end within two weeks and a further escalation is unlikely.

Data from the Commerce Department showed that U.S. retail sales unexpectedly came in unchanged in the month of September.

The Commerce Department said retail sales were virtually unchanged in September after rising by an upwardly revised 0.4 percent in August.

Data from the Labor Department showed another steep drop in U.S. import prices in the month of September.

The report showed import prices plunged by 1.2 percent in September after tumbling by a revised 1.1 percent in August.

The greenback firmed to 148.37 against the yen, its strongest level since 1990. If the greenback rises further, it may locate resistance around the 152.00 level.

The greenback edged up to 1.0059 against the franc and 1.1156 against the pound, off its prior lows of 0.9964 and 1.1366, respectively. The currency is likely to challenge resistance around 1.03 against the franc and 1.10 against the pound.

Reversing from its early 4-day lows of 1.3704 against the loonie and 0.6347 against the aussie, the greenback bounced off to 1.3862 and 0.6234, respectively. The next possible resistance for the dollar is seen around 1.41 against the loonie and 0.60 against the aussie.

The greenback moved up to 0.9707 against the euro and 0.5576 against the kiwi, after falling to a 1-week low of 0.9809 and an 8-day low of 0.5681, respectively in early deals. The greenback is seen finding resistance around 0.94 against the euro and 0.535 against the kiwi.