NEW YORK (AP) — Stronger manufacturing data from China is pushing the euro to a seven-month high against the dollar. Traders are also selling the dollar after a report showed that U.S. inflation is mild.
Chinese manufacturing rose to a 14-month high in December, adding to signs the world's second-largest economy is recovering.
In the U.S., the Labor Department said its consumer price index fell 0.3 percent in November from October, meaning that inflation is still mild. Traders took the data to mean that the Fed will continue to keep interest rates low to boost the economy.
The euro rose as high as $1.3173 in afternoon trading Friday, its highest point against the dollar since May 4. The euro was worth $1.3075 late Thursday.