Dollar Firms After July CPI Matches Forecasts, Fed Rate Hike Odds Slip

The US dollar strengthened on Thursday after the July consumer price inflation (CPI) report matched economists' expectations, despite traders scaling back bets on a Federal Reserve rate hike in September.

The annual CPI rose 3.4% in the 12 months through July, easing slightly from 3.5% in June. Core CPI climbed 2.5% over the same period, down from 2.6% in June.

Marc Chandler, chief market strategist at Bannockburn Global Forex, said the dollar's firmness was unexpected after the soft jobs data on Friday.

The dollar index rose 0.17% to 99.98, while the euro slipped 0.14% to $1.1524. The Japanese yen weakened 0.1% to 159.45 per dollar, and the New Zealand dollar fell 0.37% against the greenback.