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Dollar climbs to one-week high against rivals

Bank of America Merrill Lynch reaffirmed its bullish outlook on the dollar-yen trading pair

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The price of goods in the U.S. increased by 0.1% in September after falling 0.2% in August.

The dollar traded at a one-week high against its rivals Wednesday afternoon after data showed U.S. inflation crept higher in September. Economists had expected no change.

Overall consumer prices in September increased by 0.1% after falling 0.2% in August, a sign that the U.S. economy continues to grow at a healthy pace.

The U.S. dollar index DXY, -0.06% traded at 85.7450 Wednesday afternoon, compared to 85.3030 late Tuesday.

An analyst at Bank of America Merrill Lynch reaffirmed his bullish outlook on the dollar-yen trading pair.

“The test and hold of the January highs at [¥]105.48 must be seen as bullish. When old resistance turns to new support, that is the hallmark of a healthy bull trend,” Merrill Lynch analyst MacNeil Curry wrote in a Wednesday afternoon research note.

The dollar hasn’t fallen below ¥105.48 since Sept. 8. It traded USDJPY, +0.27% at ¥107.14 Wednesday afternoon, compared to ¥106.98 late Tuesday.

The euro continued to tumble against the dollar weighed down by the expectation that the European Central Bank could include the purchase of corporate bonds as a part of its stimulus program. The shared currencyEURUSD, +0.22% traded at $1.2642, compared to $1.2713 late Tuesday.

http://www.marketwatch.com/