2023.02.2420:23:00UTC+00U.S. Dollar Moves Notably Higher Amid Interest Rate Concerns

After turning in a relatively lackluster performance over the two previous days, the value of the U.S. dollar has moved notably higher during trading on Friday.

The U.S. dollar index is climbing 0.64 points or 0.6 percent to 105.24, reaching its best levels in over two months.

Currently, the greenback is trading at 136.43 yen versus the 134.70 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0547 compared to yesterday's $1.0596.

The dollar has benefited from its appeal as a safe haven amid ongoing concerns about the outlook for interest rates.

Adding to recent interest rate worries, the Commerce Department released a report showing an unexpected acceleration in the annual rate of growth by core consumer prices in the month of January.

The report said annual growth by core consumer prices, which exclude food and energy prices, accelerated to 4.7 percent in January from an upwardly revised 4.6 percent in December.

Economists had expected the annual rate of growth by core consumer prices to slow to 4.3 percent from the 4.4 percent originally reported for the previous month.

Including food and energy prices, consumer price growth also accelerated to 5.4 percent in January from 5.3 percent in December. The rate of growth was expected to slow to 4.9 percent.

Paul Ashworth, Chief North America Economist at Capital Economics, called the data "another sign that the Fed might have to leave its policy rate higher for longer."