News: CBA FOREX-US dollar falls to three-week low vs yen; inflation data boosts Norway's crown

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	  Norwegian crown leads gainers in FX after inflation data 

	  Chinese inflation data dents yuan, but last flat vs dollar 

	  Dollar moving toward more negative environment -analyst 

The dollar sank to a three-week low against the yen on Monday and slipped against other major currencies as investors continued to price in expectations that the Federal Reserve is near the end of its tightening cycle.

The Fed, however, is widely expected to raise interest rates by another 25 basis points this month despite Friday's data showing U.S. job gains were the smallest in 2-1/2 years. The expected rate hike in July comes after a Fed pause in June.

Meanwhile, Norway's crown, the second-weakest performing currency in the G10 this year, strengthened after data showed core inflation continued to rise in June and hit a fresh record.

The Chinese yuan, on the other hand, slumped against the dollar after weak inflation numbers in the world's second-largest economy.

In the United States, details in Friday's employment report reflecting persistently strong wage growth underscored market pricing of a further rate hike later this month. The market though is coming to the realization that an end to the Fed's cycle of rate hikes is at least near, even if once-expected cuts later in 2023 now seem unlikely.

The greenback fell as low as 141.565 yen JPY=EBS , the lowest since June 21. It was last down 0.4% at 141.655. It slid nearly 1.3% on Friday.

The dollar index =USD , which tracks the U.S. currency against a basket of major peers, was down 0.1% at 102.20 having fallen 0.87% on Friday after U.S. nonfarm payrolls increased 209,000 in June, missing market expectations for the first time in 15 months.

"I wonder if we're moving toward a more negative dollar environment," said Marc Chandler, chief market strategist, at Bannockburn Global Forex in New York.

"Since the end of June, U.S. interest rates have jumped: about 30 basis points on the 10-year, around 22 basis points on the two-year. And the dollar hasn't really gotten much traction."

The euro was last slightly up at $1.0969 EUR=EBS after a 0.7% Friday jump. Sterling GBP=D3 fell 0.3% to $1.2792, having risen 0.79% the previous session to a 15-month high of $1.2850.

For markets focused on the outlook for central bank policy, particularly the Fed, attention now turns to U.S. inflation data due on Wednesday, where expectations are for core CPI to have risen 5% on an annual basis in June.

In other currencies, the Norwegian crown firmed against the dollar and euro following Norway's inflation data. The dollar was last down 0.8% at 10.5390 NOK=D3 , while the euro dropped 0.7% to 11.5666 EURNOK=D3 .

In China, data on Monday showed factory-gate prices fell at the fastest pace in 7-1/2 years in June and consumer inflation was at its slowest since 2021, fuelling hopes for further support measures from Chinese authorities.

The U.S. dollar was last little changed versus the offshore yuan CNH=D3 at 7.232. The weak Chinese data dragged down the Australian and New Zealand dollars, which are often used as liquid proxies for the Chinese yuan.

The Aussie AUD=D3 fell 0.6% to US$0.6654, while the New Zealand dollar NZD=D3 slid 0.3% to US$0.6192.

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	Currency bid prices at 10:38AM (1438 GMT) 

 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	   High Bid	Low Bid 
											  Previous				   Change					
											  Session											  
 Dollar index	  =USD	   102.2600	   102.2900	-0.01%		 -1.189%	   +102.5600   +102.1600 
 Euro/Dollar	   EUR=EBS	$1.0968		$1.0969	 -0.01%		 +2.35%		+$1.0980	+$1.0944 
 Dollar/Yen		JPY=EBS	141.7200	   142.2200	-0.34%		 +8.10%		+142.9950   +141.5650 
 Euro/Yen		  EURJPY=	155.42		 155.84	  -0.27%		 +10.79%	   +156.6700   +155.3400 
 Dollar/Swiss	  CHF=EBS	0.8885		 0.8891	  -0.06%		 -3.90%		+0.8918	 +0.8871 
 Sterling/Dollar   GBP=D3	 $1.2790		$1.2841	 -0.34%		 +5.82%		+$1.2841	+$1.2751 
 Dollar/Canadian   CAD=D3	 1.3280		 1.3279	  +0.01%		 -1.99%		+1.3304	 +1.3269 
 Aussie/Dollar	 AUD=D3	 $0.6649		$0.6693	 -0.65%		 -2.46%		+$0.6696	+$0.6624 
 Euro/Swiss		EURCHF=	0.9743		 0.9750	  -0.07%		 -1.53%		+0.9762	 +0.9740 
 Euro/Sterling	 EURGBP=	0.8573		 0.8541	  +0.37%		 -3.06%		+0.8584	 +0.8542 
 NZ				NZD=D3	 $0.6186		$0.6209	 -0.35%		 -2.56%		+$0.6215	+$0.6167 
 Dollar/Dollar																					 

 Dollar/Norway	 NOK=D3	 10.5500		10.6230	 -0.75%		 +7.43%		+10.6730	+10.5400 
 Euro/Norway	   EURNOK=	11.5748		11.6479	 -0.63%		 +10.30%	   +11.6920	+11.5434 
 Dollar/Sweden	 SEK=	   10.8324		10.8193	 +0.22%		 +4.08%		+10.8695	+10.8090 
 Euro/Sweden	   EURSEK=	11.8760		11.8503	 +0.22%		 +6.52%		+11.8985	+11.8559 
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World FX rates	https://tmsnrt.rs/2RBWI5E 

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