Dollar rally takes a breather as US Treasury yields stall

The US dollar looks set to end the week little changed against most currencies, as US inflation data – this week’s main data release – failed to push up the currency further. Next week, the minutes of the Fed’s July meeting may shed more light on policymakers’ latest thinking, and we expect the RBNZ will be the first among developed market central banks to raise rates with a 50bp hike, more than the 25bp hike that is widely anticipated.