The dollar index held around 97.9 on Thursday after stronger-than-expected US inflation data reduced chances of a September Fed rate cut. July’s producer price index jumped 0.9% month-on-month—the biggest rise in three years—driven by higher service costs, lifting annual PPI to 3.3%. Core PPI, excluding food, energy, and trade services, rose 0.6% from June and 2.8% year-on-year. Jobless claims fell by 3,000 to 224,000, showing employers remain reluctant to lay off staff despite slower hiring. Continuing claims stayed at 1.95 million, near a three-year high, indicating challenges in finding work. While the labor market is cooling, the inflation spike has tempered rate-cut expectations.