Dollar steadies near two-week high after hotter US inflation

The dollar held near a two-week high in early Asian trade on Wednesday after hotter-than-expected US inflation data, Qatar's state news agency QNA reported.

Traders raised their bets that the Federal Reserve will raise interest rates next month, after officials sounded tougher in recent comments.

The US dollar index, which tracks the greenback against a basket of six currencies, was steady at 102.22 and approached its highest level since Oct. 28.

The index had gained 0.5% on Tuesday, when figures showed US consumer prices rose more than expected in October, driven by higher costs for food and accommodation.

Against its major peers, the dollar kept those gains in early Asian trade.

The euro was flat at $1.1168, while the British pound was flat at $1.3345.

The dollar was unchanged against the yen at 158.715 yen.

The Australian dollar rose 0.1% to $0.6870, moving back from a seven-month low, while the New Zealand dollar was flat at $0.5605.

Currency markets watch US inflation figures closely because they shape expectations for Federal Reserve policy, and higher interest rates generally tend to draw demand for the dollar.

The dollar index is a widely used gauge of the currency's overall strength, and its basket gives heavy weight to the euro, yen and other major currencies.