Dollar Slips Against Yen Ahead of US Inflation Report

The US dollar weakened against the yen on Thursday ahead of the highly anticipated US inflation report.

Investors are closely watching the Personal Consumption Expenditures Index, which is expected to show a 3.7% annual price increase in June, down from 4.1% the month before.

The dollar had initially risen against most major currencies after the US announced air strikes in Iran, but it came under pressure as the focus shifted to inflation data.

Markets are pricing in a 34.8% chance that the Federal Reserve will leave interest rates unchanged again in September, up from a 24% chance before the latest meeting.