Dollar Gains as Hot U.S. PPI Keeps Fed Rate-Hike Bets Alive

The dollar rose on May 13, 2026, after stronger-than-expected U.S. producer inflation reinforced expectations that the Federal Reserve may keep policy tight or raise rates later in 2026. The dollar index gained 0.2% in late New York trading to 98.49. U.S. producer prices rose 1.4% in April, the largest monthly increase since March 2022, and climbed 6% from a year earlier, the fastest annual pace since December 2022. Economists had expected a 0.5% monthly gain and a 4.9% annual increase. The data followed a hotter consumer inflation report and pointed to higher business costs tied to oil-price gains from the Iran conflict. The euro fell 0.2% to $1.1713 after eurozone first-quarter GDP growth slowed to 0.1% from the prior quarter. Sterling slipped 0.1% to $1.3522, while the dollar rose 0.2% to 157.87 yen. Investors also monitored President Donald Trump’s May 13 arrival in Beijing for talks with Xi Jinping on trade, Iran and supply chains.