The dollar index, which measures the greenback against six major peers, increased 0.53 percent to 108.5420.
In late New York trading, the euro fell to 1.0032 U.S. dollars from 1.0065 dollars in the previous session, and the British pound decreased to 1.1833 U.S. dollars from 1.1903 dollars in the previous session. The Australian dollar decreased to 0.6760 U.S. dollars from 0.6767 U.S. dollars.
The U.S. dollar bought 138.86 Japanese yen, higher than 137.33 Japanese yen of the previous session. The U.S. dollar was up to 0.9830 Swiss franc from 0.9793 Swiss franc, and it was up to 1.3105 Canadian dollars from 1.2970 Canadian dollars.
The above market reactions came after data showed U.S. inflation accelerated to a fresh 40-year record, fueling bets on a faster pace of Fed tightening.
The U.S. consumer price inflation increased 9.1 percent year-over-year in June, up from May's rate of 8.6 percent and the highest level since November 1981, the Labor Department reported Wednesday.
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