By Elizabeth Howcroft
LONDON, Aug 12 (Reuters) – The dollar rose on Friday but was still headed for a weekly decline as traders looked for clues as to whether U.S. inflation had peaked.
* This week’s inflation numbers came in below expectations, buoying riskier assets such as stocks and weakening the dollar as markets interpreted the data as a sign the Federal Reserve might be less aggressive in raising interest rates.
* However, the Fed authorities made it clear that they will continue to tighten monetary policy. The president of the entity in San Francisco, Mary Daly, said that she is open to the possibility of another hike of 75 basis points (bps) in September to fight high inflation.
* At 1047 GMT, the dollar index was up 0.4% at 105.520, turning around after four days of losses that led to a weekly decline of 1%.
* The US currency was up 0.5% against its Japanese pair at 133.62 yen.
* Sterling was down 0.8% at $1.212. UK GDP contracted less than feared in June, even though an extra bank holiday was expected to cause a big drag.
* The euro was down 0.3% at $1.0291. French inflation rose 6.8% year-on-year in July, while in Spain the figure was 10.8%, the highest since 1984, according to the data.
(Edited in Spanish by Carlos Serrano)