Dollar Gains as US CPI Meets Expectations, Yen Slips Further

The US dollar gained on Wednesday after US consumer price inflation met expectations in July. The Consumer Price Index (CPI) rose 3.4% in the 12 months through July, matching economists' forecasts.

However, traders have trimmed bets on a rate increase at the Federal Reserve's September meeting following Friday's jobs report, which showed employers unexpectedly shed jobs in July.

The dollar index rose 0.17% to 99.98, while the euro fell 0.14% against the greenback. The Japanese yen weakened 0.1% to 159.45 per dollar after a joint intervention by US and Japanese authorities to strengthen the currency in late July.

Mark Chandler, chief market strategist at Bannockburn Global Forex, said that despite soft jobs data on Friday, the dollar performed better than expected.