Dollar Rockets to 16-Month Highs After Hot US Inflation

Dollar Rockets to 16-Month Highs After Hot US Inflation
A packet of U.S. five-dollar bills is inspected at the Bureau of Engraving and Printing in Washington, on March 26, 2015. Gary Cameron/Reuters
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LONDON—The dollar rose to 16-month highs against the euro and other currencies on Thursday, and the yen fell back towards multi-year lows, after the hottest U.S. inflation reading in a generation encouraged bets on interest rate hikes.

U.S. consumer prices grew last month at their fastest annual pace since 1990, data showed, and traders think the Federal Reserve could respond by lifting interest rates faster than peers in Europe and Japan.