Dollar's Advance Stalls as Inflation Data Reduces Hike Bets
The dollar's advance stalled on Thursday after an overall benign US inflation reading overnight spurred traders to pare back bets for a near-term Federal Reserve interest rate hike.
The greenback was little changed against the yen in Asia's afternoon, but remained on course to gain about 1% this week as markets bought back the currency pair following recent joint US-Japan intervention that saw it plummet to a three-month low.
The dollar index, which measures the U.S. currency against the yen and five other major peers, was flat at 99.976 on Thursday, but on course for a 0.4% weekly rise.
US consumer prices increased 0.1% in July, in line with economists' expectations, leading money markets to reduce the odds of a September rate hike to 40%, down from 54% a week ago, according to CME Group's FedWatch.