New York, Nov 25 : The US dollar gained ground against most of a basket of currencies in late trading amid rising inflation pressure and expectation of an earlier hike of interest rate by the Federal Reserve.

The dollar index, which measures the greenback against six major peers, rose 0.39 per cent at 96.8639 in late trading on Wednesday.

US personal consumption expenditure price index in October grew 0.6 per cent month on month, higher than 0.4 per cent of expansion in the previous month, according to the data issued by the US Department of Commerce on Wednesday morning.

The index posted year-on-year growth of 5 per cent in October, up from 4.4 per cent in September, according to the US Department of Commerce.

The Federal Reserve is expected to raise benchmark interest rates as early as mid-2022 with some calling for faster tapering of the bond purchasing programme, Xinhua news agency reported.

San Francisco Fed President Mary Daly on Wednesday said she certainly sees a case to be made for speeding up the tapering of Fed's bond purchasing programme.

"If things continue to do what they have been doing, then I would completely support an accelerated pace of tapering," said Daly in an interview with Yahoo Finance.

The Fed has as much as 91.2 per cent probability of raising benchmark interest rate by at least 25 basis points by the scheduled meeting of the Federal Open Market Committee on June 15, 2022, according to the FedWatch Tool on the website of CME Group.

The probability for at least 25 basis points of interest rate hike by then stood at 73.5 per cent a day ago, according to the FedWatch Tool.

In late New York trading, the euro fell to $1.1199 from $1.1250 in the previous session, and the British pound fell to $1.3323 from $1.3381 in the previous session. The Australian dollar fell to $0.7192 from $0.7223.

The US dollar bought 115.43 Japanese yen, higher than 115.06 Japanese yen of the previous session. The US dollar was up to 0.9341 Swiss franc from 0.9332 Swiss franc, and it fell to 1.2671 Canadian dollars from 1.2682 Canadian dollars.

US dollar advances on continuous rise of inflation