Dollar Steady Amid Inflation Report Anticipation

The U.S. dollar held steady on Wednesday as traders awaited critical inflation reports that could determine the Federal Reserve's interest rate cuts for next week and beyond.

After last week's lackluster jobs report solidified expectations for the Fed to lower borrowing costs at its policy meeting on September 16-17, the focus now is on whether the cut will be 25 or 50 basis points.

Amid concerns about tariffs impacting prices, U.S. producer price inflation data is expected on Wednesday, with consumer price inflation data to follow on Thursday. Traders are currently fully pricing in a 25 basis points cut next week and assigning a 5% chance to a 50 basis points reduction, anticipating a total easing of 66 basis points this year.

(With inputs from agencies.)