Dollar Weakens Ahead of Inflation Data Amid Renewed Global Tensions
The US dollar weakened against the yen on Thursday ahead of the release of the Personal Consumption Expenditures Index, which investors will scrutinize to gauge inflation and interest rate expectations. The index is expected to show price pressures rose by 3.7% on an annual basis in June.
The dollar had risen earlier in the day after the US said it was conducting air strikes in Iran, generating appetite for safe-haven assets among investors. However, this trend reversed as focus shifted towards the inflation data.
Economists polled by Reuters expected a 7-2 split in the Bank of England's Monetary Policy Committee, with most expecting interest rates to remain unchanged. The pound firmed 0.1% to $1.338 after a third policymaker backed a rate hike due to renewed US-Iran conflict.
Cryptocurrencies, meanwhile, showed some resilience, with bitcoin up 2.1% at $64,802.4 and ether up 2.1% higher at $1,923.2.