Dollar Recovery Halted by Mixed PPI Ahead of Crucial CPI Report

The US dollar edged back toward 99.00 on Thursday after closing at 98.817, despite mixed producer prices that offered neither a clear boost nor much relief for the currency.

August's headline PPI rose 0.4% on the month, matching forecasts, while annual PPI accelerated to 5.4% from a revised 4.8%. However, core PPI rose by a softer 0.2%, below the 0.3% estimate.

Treasury yields remain elevated as markets weigh stronger energy inflation against softer underlying prices, with the two-year yield climbing toward 4.48% and the 10-year approaching 4.90%.