Dollar steadies as July CPI trims odds of a September Fed hike
What's next: Traders now await US producer prices and the Aug. 26 core PCE report for clues on the Fed's path.
The US dollar held steady Thursday after a mild July inflation reading led traders to scale back expectations for a Federal Reserve rate increase in September. US consumer prices rose 0.1% in July, matching forecasts, and money markets cut the implied odds of a September hike to 40% from 54% a week earlier, according to CME FedWatch. The dollar was still up 0.4% for the week against a basket of major currencies. It edged lower to about 159.3 yen, remaining below late-July highs near 164 that prompted joint intervention by the United States and Japan. The euro firmed to $1.1537, while Norway's crown weakened after Norges Bank kept rates unchanged and noted softer inflation.