The dollar index fell past 97.8 on Wednesday, extending the slide from the previous session as markets continued to bet on multiple rate cuts from the Fed following the latest market data. The headline inflation rate was unchanged at 2.7%, slightly below expectations that rounded to 2.8%, although the core inflation rate inched higher to a six-month high of 3.1%. Rate traders fully priced in a 25bps rate cut in the Fed's next meeting, adding to the momentum following sharp downward revisions to payrolls and pessimistic results from ISM PMIs, pressuring the dollar against other G10 currencies. In the meantime, President Donald Trump extended the US-China truce by another 90 days to allow more time for negotiations. The dollar extended losses against the euro and the pound sterling, while losing further ground to the yen despite BoJ officials showing a slight tilt toward keeping policy accommodative.