Dollar Gains as Inflation Data Meets Expectations Amid Iran Tensions

The US dollar ticked up on Wednesday, gaining momentum as inflation data and geopolitical tensions took center stage.

According to Reuters, the consumer price index (CPI) matched economists' expectations in July, advancing 3.4% in the 12 months through July after rising 3.5% in June.

However, traders have trimmed bets on a rate increase at the Federal Reserve's September meeting, with Fed funds futures pricing in just 40% odds of a hike, down from 55% a week ago.

The dollar index rose 0.17% to 99.98, with the euro down 0.14% at $1.1524, as traders focused on discussions to open the Strait of Hormuz and concerns over Iran war tensions.