Dollar steadies as Fed June rate cut still in sight

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Key Points

LONDON/TOKYO (Reuters) -The U.S. dollar index held steady on Wednesday as traders shrugged off hotter-than-expected U.S. inflation and still expected a Federal Reserve interest rate cut in June...

The U.S. consumer price index (CPI) increased solidly in February, beating forecasts and suggesting some stickiness in inflation...

Although the CPI rose 0.4% in February in line with forecasts, a 3.2% year-on-year gain came in just ahead of an expected 3.1% increase..

Markets see almost no chance of a Fed cut later this month, but expectations for rate cuts in June have eased only a touch to about a 67% likelihood versus 71% earlier in the week, according to the CME Groups FedWatch Tool...

Elsewhere, the dollar was 0.2% higher against the yen at 147.98, after the Japanese currency saw its biggest fall in a month on Tuesday following Bank of Japan Governor Kazuo Uedas slightly bleaker assessment of the nations economy...

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