Euro settles higher against dollar in American trade

Euro inched up against the dollar to near the highest since May 2016, past the 1.14 barrier for the second session, following earlier data from the euro zone and the US, the world's largest economy. 

As of 04:29 GMT, EUR/USD rose 0.04% to 1.1470 from the opening of 1.1464, with an intraday high at 1.1487, and a low at 1.1435. 

Earlier euro zone data showed consumer prices for the whole region unchanged as expected, compared to a 0.1% dip in May, while prices rose 1.3% on a yearly basis, compared to a 1.4% rise in May, as core prices steadies at 1.1% in line with expectations, up from 0.9% in May. 

From the US, the Empire State Manufacturing Index fell to 9.8 in July from 19.8, missing expectations of 15.2. 

The policy divergence between the European Central Bank and the Federal Reserves is buoying the common currency, as markets price in a possibly tightening of policy by the ECB later this year, while chances of a Fed rate hike this year has subsidized. 

Euro marked the first weekly close past 1.14 against the dollar for the the first time since April 24, 2016, following a string of disappointing US data that cut the chances of Fed policy tightening.