NEW YORK: The dollar index hit its highest level in six months on Thursday, as economic data was mostly stronger than anticipated and the European Central Bank (ECB) signaled it was finished with its rate hike cycle.

US retail sales increased by 0.6% in August, more than the expected 0.2% rise, boosted by higher gasoline prices while weekly initial jobless claims rose to 220,000 but were below the 225,000 forecast.

Rising gasoline prices also affected the latest inflation data, as the producer price index for final demand rose by 0.7% last month, the most in more than a year, and higher than the 0.4% estimate.

The dollar index was last up 0.5% at 105.18, just off the 105.31 level hit earlier in the day, its highest since March 10.

The euro slumped against the dollar after ECB raised its key interest rate to a record high of 4% on Thursday but indicated this was likely to be its final move in a more than year-long fight against inflation as the euro zone economy continues to stagger. The euro was down 0.64% at $1.0655 after falling to $1.0651, its weakest since May 31.

“(ECB President Christine) Lagarde is hinting that this could be the last hike because she’s saying if we keep rates here for a certain period of time this will do the job sort of thing,” said Erik Bregar, director, FX & precious metals risk management, at Silver Gold Bull in Toronto.