US dollar retreats after softer-than-expected US inflation data

3% in August, lower than expected Euro set for monthly loss against dollar US Treasury yields fall across the board Crude oil prices set for big monthly gain (Updates prices throughout, adds analyst comment) By Chibuike Oguh NEW YORK, Sept 30 (Reuters) — The dollar retreated against major currencies on Wednesday following data showing a smaller-than-expected increase in US inflation, which reduced market bets on an interest rate hike from the Federal Reserve. 3% last month. 4%. The dollar has been strengthening in tandem with rising US Treasury yields on growing expectations of more Fed rate hikes amid inflation driven by higher oil prices.

848%. 135725. The single currency is still headed for a monthly loss against the dollar after two consecutive months of gains. "We can't tell if the revised PCE data by itself or if other factors were responsible for a softer-than-expected print, which initially caused bonds to rally and yields to come down and the dollar to weaken," said John Velis, FX and macro strategist at BNY.

"We had some strong GDP data: the long end of the yield curve has kind of gone back up and front end is still lower so the curve is steeper. " Traders are now pricing a nearly 35% probability of a Fed rate hike in October, down from 70% a week ago, according to the CME's FedWatch tool. Oil prices rose and were on track for a big monthly gain in September as US-Iran talks aimed at ending their war stalled. 45 a barrel.

7987 yen. 83425 versus the Swiss franc and on track for the second straight month of gains. 3287 but was set for a monthly loss against the dollar, ending two consecutive months of gains. 20.

It is still headed for a monthly gain in September, snapping two straight months of losses. 5643. com;)