Forex-Dollar gains, yen slips as US CPI meets expectations

The Japanese yen weakened 0.1% to 159.45 per dollar. It has pared gains that were made during the joint intervention in late July by U.S. and Japanese authorities to strengthen the Japanese currency.

"The release of the latest CFTC report at the end of last week did show that that intervention triggered a sharp squeeze of speculative short yen positions," said Lee Hardman, senior currency economist at MUFG.

"If there is no change in fundamentals, speculators will be encouraged to rebuild short yen positions at a time when stable financial market conditions remain supportive for carry trades," he added.

The New Zealand dollar fell 0.37% versus the greenback to $0.5857 after Prime Minister Christopher Luxon said on Wednesday he had won a confidence vote of ruling party lawmakers, following speculation about his leadership months from a general election.