Dollar steadies near 99.9 ahead of July PPI
The dollar index steadies around 99.9 after prior-session volatility, as investors await July producer inflation data for clues on price trends.
9 on Thursday after experiencing heightened volatility in the previous session, as investors looked ahead to July’s producer inflation report for further clues on recent price trends. 1% from the previous month. Markets now see around a 40% chance of a 25 basis point rate hike from the Federal Reserve in September, down from nearly 50% a day earlier. Meanwhile, investors continued to assess prospects for a deal to reopen the Strait of Hormuz, although escalating rhetoric between the US and Iran amid deadlocked negotiations reduced the likelihood of an imminent agreement.
Elsewhere, traders remained alert for potential intervention to support the yen as the currency approaches the 160 level against the dollar.