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15.07.202612:54:58UTC+00Dollar Little Changed on Wednesday

The dollar index was largely steady around 101 on Wednesday as markets balanced softer-than-expected US inflation data against rising geopolitical tensions between the United States and Iran, which risk reigniting price pressures.

US producer prices unexpectedly declined by 0.3% in June, defying expectations for no change, while both the annual headline and core PPI readings also undershot forecasts. This followed Tuesday’s weaker-than-expected CPI release, adding to evidence that inflation is moderating.

At the same time, Fed Chair Warsh, in testimony before Congress, reaffirmed the Federal Reserve’s resolve to restore price stability but stopped short of signaling a more hawkish policy trajectory. Interest-rate futures now imply roughly a 49% chance of a Fed rate hike in September, down from about 70% a week earlier.

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