The Labor Department said on Friday its Consumer Price Index jumped 0.5 percent last month after advancing 0.4 percent in August. Economists polled by Reuters had forecast the CPI surging 0.6 percent in September.
The dollar index, which tracks the greenback against six major currencies, was down 0.24 percent at 92.831, after falling to a more than two-week low of 92.751.
Against the Japanese yen, the greenback fell to a more than two-week low of 111.7 yen.
The euro hit a session high of $1.1861 against the dollar and was up 0.27 percent.