Dollar Rises on US CPI Data, Rate-Hike Bets Cooled Down

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

Despite this, rate-hike bets have cooled down since Friday's jobs report showed employers unexpectedly shed jobs in July. Fed funds futures traders now price in a 40-44% chance of a September rate 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. The greenback has been boosted by higher oil prices, which steadied in volatile trading on Wednesday.