Dollar rallied for the third day, especially after indications of a possible US interest rate hike the coming week. However, the possibility of a more cautious take on future rate hikes slowed it down.
The dollar gained 6% but the trend of US treasury yields have pulled down on expectations. It also suggests that the Fed could be on a wait-and-watch towards monetary policy outlook.
The dollar had touched higher at 97.40 earlier today.
Even as Street expects just one more rate hike in 2019, banks like JP Morgan (JPM) looks to at least four interest rate hikes in the coming year.
US inflation data also indicated that headline inflation forecast is at 2.2%, up from 2.1%.
The 10-year Treasury note yield rose to 2.886%, as it continued its ascent from recent lows.
Earlier today, US futures hinted at a higher open in the stock market after ending flat on Tuesday, on renewed optimism regarding the US-China trade deal talks.
