U.S. dollar climbs on positive inflation data

NEW YORK, April 30 (Xinhua) -- U.S. dollar on Monday traded higher against other major rivals in late trading as inflation neared the U.S. Federal Reserve's target, potentially signaling a faster increase in U.S. interest rates.

The U.S. personal consumption expenditures (PCE) price index, excluding food and energy, a key inflation gauge preferred by the Federal Reserve, rose 1.9 percent in the 12 months through March, according to data released by the U.S. Department of Commerce on Monday.

The figure nearly matched the Fed's 2 percent target.

Meanwhile, the U.S. personal income and spending rose 0.3 percent and 0.4 percent respectively in March, the same filing said.

The uptick in inflation came a day before the Federal Reserve two-day policy meeting that begins on Tuesday.

Analysts expected the Fed to keep rates on hold when they conclude their meeting on Wednesday, but the rate setters could signal they are ready to hike in June.

The dollar index, which measures the greenback against six major peers, increased 0.31 percent at 91.828 in late trading.

In late New York trading, the euro was down to 1.2081 dollars from 1.2123 dollars in the previous session, and the British pound decreased to 1.3749 dollars from 1.3784 U.S. dollars in the previous session. The Australian dollar decreased to 0.7529 dollar from 0.7581 dollar.

The U.S. dollar bought 109.29 Japanese yen, higher than 109.03 Japanese yen of the previous session. The U.S. dollar rose to 0.9907 Swiss franc from 0.9879 Swiss franc, and it increased to 1.2841 Canadian dollars from 1.2834 Canadian dollars. Enditem