Dollar Rises 0.17% After 3.4% U.S. CPI, Yen Slips Back Toward 159.45
Updated
Updated · CNBC · Aug 12
Dollar Rises 0.17% After 3.4% U.S. CPI, Yen Slips Back Toward 159.45
3 articles · Updated · CNBC · Aug 12
Summary
The dollar index climbed to 99.98 after July CPI matched forecasts, with headline inflation easing to 3.4% from 3.5% and core CPI to 2.5% from 2.6%.
Fed rate-hike bets still softened after last week's weak jobs report: futures priced a 40% chance of a September move, down from 44% before the CPI data and 55% a week ago.
The yen weakened 0.1% to 159.45 per dollar, extending its retreat after late-July U.S.-Japan intervention as analysts said stable markets could encourage renewed short-yen carry trades.
Higher oil prices also underpinned the greenback as traders tracked Strait of Hormuz talks, Middle East shipping attacks and an impasse in efforts to end the Iran war.
Attention now shifts to Thursday's PPI, Friday's retail sales and the Fed's September projections, with markets assigning a 56% probability of a rate hike by October.