Dollar rises, yen falls after US inflation data meets forecasts

The US dollar strengthened on Wednesday after consumer price inflation in the United States for July matched economists’ forecasts, prompting traders to scale back expectations for when the Federal Reserve might raise interest rates.

The core consumer price index rose 2.5 percent in the 12 months to July, down from a 2.6 percent increase in June.

The dollar index, which tracks the greenback against a basket of six major currencies, climbed 0.17 percent to 99.98 points.

The euro slipped 0.14 percent to $1.1524, the yen fell 0.1 percent to 159.45 per dollar, and the New Zealand dollar dropped 0.37 percent to $0.5857.