Dollar drifts as markets await US inflation data for Fed clues

According to Business Recorder, the dollar held roughly steady in early Asian trade on Wednesday, shrugging off fresh attacks on shipping in Middle East waterways. Traders were waiting for US inflation figures due later in the day, which could offer clues on the Federal Reserve's interest rate path. The yen was flat at 159.335 per dollar, close to its weakest level this month despite a joint US and Japanese intervention to lift the currency.

The euro was steady at $1.1537, while sterling held at $1.3503 and the Australian dollar was flat at $0.7064. The kiwi slipped 0.1% to $0.5876 after New Zealand Prime Minister Christopher Luxon said he had secured a confidence vote among ruling party lawmakers, amid speculation over his leadership. The dollar index gained 0.1% to 99.858, and Brent crude rose 0.8% to $89.61 a barrel after a Houthi attack on a cargo ship and a US operation against a container vessel off Pakistan.

Chicago Fed President Austan Goolsbee said on Tuesday the central bank was more worried about inflation running too high than about labour market weakness. It was unclear whether that view put him with the minority who backed a rate increase last month. According to CME Group's FedWatch tool, futures imply a 52% chance rates stay unchanged at the September 16 meeting, against 48% for a quarter-point rise. Bitcoin and ether were flat at $63,708.64 and $1,881.91.