Dollar Traded Sideways as Markets Eye US Inflation Data
The US dollar traded relatively stable in early Asian dealings on Wednesday, shrugging off renewed attacks on shipping in critical Middle Eastern waterways.
Currency markets are focused on the upcoming release of US inflation data, which is expected to provide clues about the next move by the Federal Reserve.
The yen was flat against the dollar at 159.335 yen, hovering around its weakest levels this month despite joint intervention by US and Japanese authorities to strengthen the Japanese currency.
According to CME FedWatch, there is a near-50% chance of a rate hike in September and a similar likelihood that rates will remain steady, reflecting uncertainty about job numbers, stubborn inflation, and changes to the Federal Reserve's policy stance.