Dollar Steadies as Inflation Data Dulls Rate Hike Expectations

The US dollar steadied on Thursday after inflation data released on Wednesday reduced expectations of near-term interest rate hikes by the Federal Reserve.

According to financial markets, the probability of a September interest-rate hike dropped from 54% to 40%, following the release of US consumer prices that rose 0.1% in July, matching economists' forecasts.

The dollar remained on track for a weekly gain of around 1% and was steady against the Japanese yen, trading at 159.44 yen by midday in Asia.

The U.S. Dollar Index, which measures the greenback against six major currencies, including the yen, was steady at around 100, heading for a weekly gain of 0.4%.