The dollar is spiking

The US dollar is ripping higher and oil is dropping following inflation data that showed consumer prices rose more than expected in April.

Near 9:15 a.m. ET on Friday, the dollar index was up as much as 0.7% to 96.05, nearly its highest level this month. West Texas Intermediate crude oil prices were down as much as 1.7% to fall back below $60 a barrel.

US inflation data released Friday morning showed that "core" inflation rose 0.3% month-on-month in April more than the 0.2% increase that was expected.

This marked the largest month-on-month increase since January 2013. Core inflation as boosted by an increase in owners' equivalent rent, medical care, and household furnishings and operations.

Headline inflation, which includes food and energy, rose just 0.1% month-on-month and actually fell 0.2% over the prior year in April, owing to a 19.4% decrease in the energy price index.

Following this report the dollar was rallying, the euro was falling, and oil prices were also lower.

The other big news in markets on Friday was a report from Bloomberg that indicated Germany's finance minister Wolfgang Schaeuble said Greece might need a "parallel currency" if it cannot meet its debt obligations.

Schaeuble's comments mark a turn in the discussion surrounding Greece. As Business Insider's Mike Bird outlines, he is seen as major hardliner in the negotiations between Greece and its European creditors, demanding extensive reforms for additional support to Greece and doesn't really want to bail Greece out at all.

This report, however, did little to shake markets.

Here's the rally in the dollar on Friday.

FinViz

And the drop in oil.

FinViz