Dollar Slumps Below 100.00 as Fed Hike Odds Fade

The US Dollar Index (DXY) fell below 100.00 on Friday in Asian trading hours, following cooler US inflation data.

The DXY weakened after the Bureau of Labor Statistics reported that the Producer Price Index (PPI) was unchanged in July, missing market expectations of a 0.2% increase.

This softening of PPI data has bolstered market expectations that the Federal Reserve could keep interest rates unchanged next month, with markets pricing a 34.8% chance of a rate hike at the September meeting, down from 40% immediately after the PPI data.