* Dollar on best winning streak in daily terms since 2012
* Swedish crown falls after Riksbank statement
* U.S. inflation is day's main event
* Graphic: World FX rates in 2016 tmsnrt.rs/2egbfVh
By Patrick Graham
LONDON, Feb 15 The dollar ground out an 11th
straight daily rise on Wednesday, as investors' focus moved to
inflation data in the United States for more support for the
idea of a rise in Federal Reserve interest rates next month.
Fed chief Janet Yellen testifies for a second day in
Congress after spurring more gains for the greenback by telling
lawmakers on Tuesday that the U.S. central bank would consider
raising rates at one of its "upcoming" meetings.
For markets that pointed to a hike in either March or May.
It also opens the door to the Fed raising the return for holding
dollars more than twice before the end of the year, beyond what
investors have currently priced into short-term interest rates.
Consumer inflation is forecast to have risen to 2.4 percent
in January and producer price numbers on Tuesday were generally
higher than expected. The dollar's run of daily gains is now its
longest since the peak of the euro zone's debt crisis in 2012.
"After Yellen's testimony, CPI data are the pick of the week
for the U.S.," said Elsa Lignos, senior currency strategist with
RBC Capital Markets.
"The risks are skewed to a higher print, particularly given
the consumer component from yesterday's strong PPI data."
The CME FedWatch indicator puts the chances of a rise in
March at just 17 percent but some market participants say
pricing of market interest rates points to odds of 30 percent or
more, rising to more than 50 percent for May.
The dollar index, which measures the greenback
against its six major peers, was last up 0.2 percent at 101.43,
its highest since Jan. 20.
It rose 0.2 percent to 114.50 yen and a quarter of a percent
to $1.0552 per euro, its strongest in a month.
Elsewhere, the Swedish crown fell back into negative
territory for the day after the Riksbank kept the door open to
further action to reduce interest rates and cool the strength of
the crown. It traded 0.2 percent weaker at 9.4635 per euro by
"The krona exchange rate continues to create uncertainty
about the development in inflation," the central bank said.
"Since December, the krona has been clearly stronger than
expected. This rapid appreciation is not expected to continue,
For Reuters Live Markets blog on European and UK stock
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(Editing by Gareth Jones)