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The dollar steadied on Friday after a significant rise in U.S. producer prices renewed speculation the Federal Reserve will hike interest rates ahead of schedule.

Earlier this week, the Fed signaled they are in no hurry to tighten monetary policy.

Today’s inflation data, however, could be a game changer for policy makers on the fence about whether to hike rates soon after bond-buying has wound down completely.

The dollar index was last at 79.42 for a weekly loss of 1.2 percent, its worst decline this year.

Traders sifted through a pile of economic data today, including consumer price inflation figures from Germany and China.

The dollar was little changed at $1.3890 versus the euro, holding near a 2 1/2-year low set back in March.

Mid-morning gains helped to dollar to $1.6730 versus the sterling, up about 0.3 percent from yesterday.

The buck inched up slightly from a monthly low near Y101.30 versus the resurgent yen. The yen has gained 2.6 percent this year, with gains accelerating this week amid weakness in global equities.

In economic news, U.S. producer prices recorded their largest increase in nine months in March as the cost of food and services rose.

The Labor Department said its producer price index for final demand advanced by 0.5 percent in March after edging down by 0.1 percent in February. That was the largest increase since June last year. Economists had been expecting the index to tick up by only 0.1 percent.

Harmonized inflation in Germany slowed to its lowest level in nearly four years, final data from Destatis showed. The harmonized index of consumer prices rose 0.9 percent year-on-year in March, in line with flash estimate.

China’s consumer price inflation accelerated in March on higher food prices, but remained within the government’s full year 3.5 percent target, data from the National Bureau of Statistics revealed.

Consumer prices rose 2.4 percent from a year ago following a 2 percent rise in February, matching economists’ expectations.

The dollar was little changed on Thursday after broad weakness in the previous session.

A slew of economic data included some relatively good news from the U.S. jobs front, as initial jobless claims fell to the lowest since May 2007.

Dismal Chinese export figures and a significant drop in U.S. stock prices boosted the dollar’s perceived value as a safe haven.

Still, there was scarcely any upside for the dollar after minutes of the Federal Reserve’s March meeting showed policy makers remain dovish on interest rates.

The buck eased slightly versus the euro, holding near $1.3880 for most the day. Technical support was seen as the dollar near a 2 1/2-year low set back in March.

There was little movement against the sterling after the Bank of England left the size of its bond-buying program unchanged and held its key lending rate at a record low of 0.5%.

The dollar held near $1.68, unchanged from yesterday’s close.

The yen, also favored as a safe haven, extended its recent gains against the dollar. The pair was below Y102 at last check.

In economic news, a report from the Labor Department showed that U.S. weekly jobless claims dropped to a nearly seven-year low.

Initial jobless claims dropped to 300,000 in the week ended April 5th, a decrease of 32,000 from the previous week’s revised figure of 332,000.

Chinese exports fell 6.6% from a year earlier in March, missing forecasts for a 4.2% gain. Chinese Premier Li said the government won’t take any short-term stimulus measures to give the economy a boost.

The dollar weakened on Monday as traders continued to assess the latest economic news from the U.S.

Friday’s slightly disappointing March jobs report has raised suspicions that the Federal Reserve will keep its ultra-easy monetary policy in place for at least a year.

Meanwhile, an encouraging report on German manufacturing might give euro zone policy makers an excuse not to offer their own stimulus next month.

ECB policymaker Ewald Nowotny hinted as much today, saying that concerns about low inflation are overblown.

The dollar dropped to $1.3750 versus the euro, giving back some of last week’s gains. About a month ago the buck touched a 2 1/2-year low near $1.40 versus the euro.

Germany’s industrial production increased for the fourth consecutive month in February. Factory output was up 0.4 percent.

The dollar rally versus the yen lost steam, with the pair holding at Y103 ahead of tomorrow’s Bank of Japan interest rate decision.

There was little movement near $1.66 versus the sterling, with the buck stuck in a stubborn trading range.

Traders will be looking ahead to Wednesday for the release of minutes from the most recent Federal Reserve meeting.

The dollar showed modest strength against the euro on Friday, staying near a monthly high after official data revealed solid U.S. jobs gains in March.

The Labor Department said U.S. non-farm payroll employment rose by 192,000 jobs and unemployment rate stayed at 6.7 percent.

The jobs numbers may heighten speculation that the Federal Reserve will wind down its stimulus program by year’s end.

“The U.S. economy continues to create jobs at a good but not great pace that we should be seeing this far into the recovery,” Peter Boockvar, managing director at the Lindsey Group, said.

He added, “It is good enough however for the Fed to continue its taper, especially again at month end, but not good enough we believe to get the 3%+ GDP growth rate that we all hope for.”

The buck was steady at $1.37 versus the euro, having bounced between $1.367 and $1.373 over the course of the session.

Positive German manufacturing data gave the euro a bit of a lift in very early deals.

Germany’s factory new order growth exceeded expectations on robust domestic demand in February, official data showed Friday.

Factory orders advanced 0.6 percent from the previous month, Destatis said.

Meanwhile, the dollar nudged up slightly to $1.6560 versus the sterling.

A multi-month high of Y104 versus the yen was short-lived. The pair was back to Y103.30 by mid-day.

The Canadian dollar fell against the most major currencies in the early European session on Tuesday.

The Canadian dollar slipped to a 5-day low 1.5267 against the euro around 3:40am ET, from yesterday’s closing value of 1.5215.

The Canadian dollar slipped to a 4-day low of 1.1069 against the greenback around the same time, from yesterday’s closing value of 1.1050.

Against the yen, the loonie fell to 93.28, from yesterday’s closing value of 93.42.

If the Canadian dollar extends its downtrend, it may find support around 1.55 against the euro, 1.11 against the greenback and 92.21 against the yen.