Forex
Dollar Weakens on Tame Inflation Data, Rate-Hike Bets Fall
The US dollar weakened on Wednesday after July's consumer price inflation matched economists' expectations, easing concerns of an imminent interest rate hike by the Federal Reserve.
In the 12 months through July, the Consumer Price Index (CPI) rose 3.4%, matching consensus and core CPI increased 2.5%. This tempered rate-hike bets, with Fed funds futures traders pricing in a 40% chance of a September hike, down from 44% before Wednesday's data.
The dollar index fell 0.12% to 99.69, while the euro rose 0.12% at $1.1554. The Japanese yen strengthened 0.3% against the greenback to 158.84 per dollar, influenced by joint US-Japan interventions and market reactions to the latest CFTC report.