The dollar index ended Thursday little changed despite a dovish US PPI report that lowered the odds of a Fed rate hike in September to 35% from 40% on Wednesday. The July final-demand PPI was unchanged month-over-month and up 4.7% year-over-year, weaker than expectations of 0.2% and 4.9%, while the 10-year Treasury yield fell 5 basis points. Reduced safe-haven demand also pressured the dollar as there were no new military attacks in the Persian Gulf and reports said the Trump administration is pivoting to a naval blockade to pressure Iran economically. The euro rose slightly by 0.03% as markets discount a 90% chance of an ECB rate hike on September 10, while the yen gained 0.07% after Bloomberg reported Prime Minister Sanae Takaichi's government supports a BOJ rate hike in September or October. October gold fell 47.0 dollars, or 1.06%, and September silver fell 0.707 dollars, or 1.08%, on reduced safe-haven demand.
