FOREX-Dollar struggles as softer inflation dims Fed hike bets
UUP•Dollar weakens after softer inflation data
The dollar extended its weakness on Wednesday after tumbling from a two-week high, as softer-than-expected inflation data curbed bets on a near-term Federal Reserve rate hike, despite concerns that elevated oil prices could fuel inflation risks.
Major currencies and yields move after CPI surprise
Against the yen JPY=, the dollar fetched 162.08, down 0.1%. The euro EUR= and the British pound GBP= each gained 0.1%, trading at $1.1433 and $1.3401, respectively.
The New Zealand dollar NZD= was also well bid at $0.5819, hovering around its strongest level in a month, and the Australian dollar AUD= was steady at $0.6983.
The U.S. dollar index =USD, which measures the currency against a basket of six peers, was a shade weaker at 100.81. It fell 0.35% in the previous session for its biggest pullback in nearly two weeks, which dragged the index down from the highest level since July 2.
