Dollar Steadies as US Producer Prices Remain Unchanged

The US dollar steadied on Thursday after data showed that producer prices remained unchanged in July, leading traders to pare back bets on a September Federal Reserve interest rate hike. The flat reading in the Producer Price Index for final demand last month followed a revised 0.1% drop in June.

Economists polled by Reuters had forecast the PPI rebounding 0.2%, but instead it remained at zero. This comes after Wednesday's consumer price inflation report showed that US consumer prices barely increased last month.

Noel Dixon, senior macro strategist at State Street, said the components of Thursday's report that feed into the personal consumption expenditures data due later this month suggest that the report 'should be pretty good.'