The dollar index hovered around 97.8 on Thursday, holding steady for a second straight session as traders awaited August consumer inflation data that could strengthen bets on a larger 50 basis point Federal Reserve rate cut. On Wednesday, data showed producer prices unexpectedly fell 0.1% in August, following a downwardly revised 0.7% gain in July and defying expectations for a 0.3% increase. The surprise decline eased inflation worries and reinforced confidence that the Fed will press ahead with policy easing. Markets are fully anticipating a 25 basis point cut next week, while assigning an 8% probability to a more aggressive half-point move. Meanwhile, the Trump administration said it will appeal a federal judge’s ruling that temporarily blocked President Trump from firing Fed Governor Lisa Cook. Separately, Stephen Miran, a dovish nominee, advanced in the Senate Banking Committee’s confirmation process to join the Fed.