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Dollar Index slips below 99.00 as traders await US inflation data

The DXY held near 98.80 after dropping 0.1% on the day, with Thursday’s PPI and Friday’s CPI seen as key inputs for the Fed’s policy path.

Reported · Written up by our desk · Major Pairs

The US Dollar Index, which tracks the Greenback against a basket of currencies, fell to an over two week low in the Asian session and was trading around the 98.80 area, down 0.1% on the day, according to FXStreet.

Traders are waiting for US inflation figures, with the US Producer Price Index due on Thursday and the Consumer Price Index scheduled for Friday, which could shape expectations for the Federal Reserve’s policy path and influence the dollar’s near term direction.

FXStreet also pointed to a recent pullback in the DXY from a nearly three week high, citing a surging Japanese yen as one contributor to the move.

The dollar’s outlook is being weighed against risks around the September 15-16 Fed meeting after stronger than expected US Nonfarm Payrolls increased the odds of a rate hike, while crude oil near July 24 highs reflects supply disruption fears tied to US-Iran tensions around the Strait of Hormuz.

Latest closeWTI crude $90.70 ▲0.5%|Dollar index 99.58 ▼0.1%

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