LONDON—The dollar lost further ground versus other major currencies on Thursday, after traders reined in bets on an aggressive interest rate hike by the Federal Reserve after softer-than-expected U.S. inflation data the previous day.
The dollar index remained on the back foot in European trading hours, slipping 0.2 percent to 105.000, after recording its biggest daily fall in five months, of 1 percent, the previous day.
Data on Wednesday showed U.S. consumer prices were unchanged in July, month on month, after advancing 1.3 percent in June.
“Yesterday’s data gave hope that inflation has peaked and the Fed will need to raise rates less sharply to keep inflation under control,” currency analysts at Commerzbank said in a note….