The dollar index fell 0.32% on Tuesday after US June consumer prices rose less than expected, a dovish factor for Fed policy. The annual headline CPI eased to 3.5% from 4.2% in May, below the 3.8% forecast, while core CPI slowed to 2.6% from 2.9%, better than the 2.8% estimate. Swaps markets now price only a 17% chance of a 25-basis-point rate hike at the July 28-29 FOMC meeting, down from 43% on Monday. The euro rallied to a one-week high, gaining 0.38%, while the yen edged up 0.15% amid lower Treasury yields and comments from Japan's finance minister about adding government bonds to a tax-free investment program. Gold surged 1.60% and silver jumped 1.95% as the benign inflation data pushed the dollar and yields lower, though hawkish remarks from Fed Chair Warsh and Chicago Fed President Goolsbee capped gains.