Dollar falls on flat PPI, cooling rate hike bets

NEW YORK, Aug 13 (Reuters) – The dollar fell on Thursday after data showed producer prices were ‌unchanged in July, coming after Wednesday’s consumer price inflation report that showed that U.S. consumer prices barely increased last month.
The flat reading in the Producer Price Index for final demand last month followed a revised 0.1% drop in June. Economists polled by Reuters had forecast the PPI ​rebounding 0.2%.

The soft data led traders to further pare back expectations of a Federal Reserve rate hike ​in September. Fed funds futures now show a 31% probability of a September hike, down from ⁠40% on Wednesday and 55% a week earlier.