US Dollar Steadies After Benign Inflation Data

The US dollar steadied on Thursday after a benign reading of US consumer inflation prompted traders to reduce their bets on a September rate hike from the Federal Reserve.

Data showed US consumer prices increased by 0.1 per cent in July, in line with economist expectations. As a result, money markets reduced the odds of a September rate hike to 40 per cent, down from 54 per cent a week ago, according to CME Group’s FedWatch.

The dollar is still up 0.4 per cent so far this week against a basket of major currencies and headed for its first weekly gain in three weeks.