The dollar index continues to stay weak under 100 mark on Friday as soft inflation data is reducing bets of a Federal rate hike. Data released yesterday showed US core producer prices increased less than expected in July, offering further evidence that inflationary pressures are not broadly intensifying following Wednesdays subdued CPI report. However, uncertainty surrounding efforts to end the conflict and reopen the Strait of Hormuz remains a key risk to the inflation outlook and limiting downside in the safe haven currency. Meanwhile, the 10-year US Treasury yield hovered around 4.65% on Friday, holding a recent decline as softer-than-expected inflation data led investors to reduce expectations for a Federal Reserve rate hike in September. The dollar index that measures the greenback against a basket of currencies is quoting at 99.77, down 0.10% on the day. Among basket currencies, EUR/USD and GBP/USD are both up marginally to the tune DXY weakness.
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