Dollar eases as Treasury yields fall, oil declines ahead of CPI data

The dollar slipped 0.3% to 102.302 on the DXY index as Treasury yields fell 5.2 basis points to 5.192% and oil prices declined. BankPro's Paolo Broccardo noted that lower oil prices moderate the inflation impulse that has supported Fed tightening expectations. The dollar could remain under mild pressure until Wednesday's CPI data. A firmer reading could boost near-term Fed tightening expectations, lifting yields and the dollar. A softer print could challenge the December rate rise currently priced. Julius Baer's David Kohl expects CPI to show inflation accelerated in September driven by fuel and energy prices, but underlying trend remains moderate. He sees the Fed keeping rates unchanged in October and delivering a hike in December. The dollar had reached an 18-month high of 102.607 on Monday.