Dollar Falters as Fed Hike Bets Slashed Amid Benign Inflation
The US dollar's advance stalled on August 13 after a benign US inflation reading overnight led traders to reduce bets for a near-term Federal Reserve interest rate hike.
The greenback was little changed against the yen as of Asia's midday, but remained on course to gain about 1% this week following recent joint US-Japan intervention that saw it plummet to a three-month low.
The dollar index, which measures the US currency against the yen and five other major peers, was flat at 100 on Thursday, but on course for a 0.4% weekly rise.
U.S. consumer prices increased 0.1% in July, in line with economists' expectations, leading money markets to reduce the odds of a September rate hike to 40%, down from 54% a week ago, according to CME Group's FedWatch.