LONDON—The dollar sank to a two-month low on Wednesday ahead of a key read of U.S. inflation, while sterling hit 15-month highs after wage growth data fed expectations that the Bank of England (BoE) has further to go in raising rates.
The yen strengthened past 140 to the dollar for the first time in a month, helped by growing expectations that the Bank of Japan (BOJ) will unveil changes to its ultra-low interest-rate policy at this month’s meeting.
Investors were laser-focused on U.S. inflation data due later on. Core consumer prices, which exclude food and energy, are expected to have risen 5 percent on an annual basis in June. The figures could give a steer on how much more the Federal Reserve might raise interest rates….