The dollar settled today amid growing expectations that the Federal Reserve (U.S. Central Bank) will end its rate hike cycle after data showed a moderate rise in U.S. consumer prices in July, with the yen hovering near a key threshold of 145 per dollar.
The yen fell against the euro to 159.135, just under the 15-year peak touched yesterday at 159.19.
Data published yesterday showed that the U.S. consumer price index rose 0.2% last month, the same as in June, while the index increased 3.2% in July year-on-year.
The slowdown in inflation coupled with slowing job growth has strengthened experts’ expectations that the U.S. central will be able to manage a “soft plunge” in the economy.
