The dollar strengthened broadly in New York trading on the 10th after August US Producer Price Index (PPI) growth accelerated to 5.4% year over year, exceeding forecasts and reviving expectations for a rate hike at next week’s Federal Open Market Committee (FOMC) meeting. The euro fell despite the European Central Bank (ECB), the euro area’s central bank, raising its policy rate by 0.25% for its second hike of the year. The Dollar Index rose 0.28% to 99.06, while the yen fell 0.50% to 154.32 per dollar after a more than 6% appreciation since late-July intervention. Rising oil prices linked to Middle East tensions added pressure on the European economy and supported dollar safe-haven flows. Markets are now focused on the US Consumer Price Index release on the 11th, which could further influence expectations for Federal Reserve policy and the dollar’s rally.