The dollar halted its recent advance on Thursday after U.S. inflation data released on Wednesday reduced expectations that the Federal Reserve will raise interest rates in the near term.
The dollar was little changed against the Japanese yen by midday in Asia, but remained on track for a gain of around 1% this week, following recent joint U.S.-Japanese intervention.
The U.S. Dollar Index, which measures the greenback against the yen and five other major currencies, was steady at around 100 on Thursday and was headed for a weekly gain of 0.4%.
U.S. consumer prices rose 0.1% in July, in line with economists’ expectations, prompting financial markets to lower the probability of a September interest-rate hike to 40% from 54% a week earlier.
The dollar traded at 159.44 yen, close to the 160 level that some market participants consider a red line following the rare joint intervention carried out at the end of July.
The move helped push the exchange rate lower, from near a four-decade high of 164 yen to 155.20 yen over three days.
The euro was little changed at $1.1523, while the British pound fell 0.05% to $1.3489 ahead of a series of UK economic data due later in the day, including gross domestic product figures.
The Australian dollar fell 0.2% to $0.7049, but remained close to the 10-week high of $0.7091 reached on Wednesday.
The New Zealand dollar declined 0.4% to $0.5832, extending its gradual retreat from its highest level since early June, reached earlier this month.
Bitcoin was steady at around $63,532.
Reuters
