The dollar index rose on Wednesday following an increase in U.S. inflation data for August 

However, this increase had minimal impact on market expectations regarding Federal Reserve rate hikes 

The consumer price index (CPI) for August showed a significant rise of 0.6%, the largest since June 2022 

This increase was primarily driven by higher gasoline prices, as reported by the Labor Department 

Excluding the volatile food and energy components, the CPI increased by a more moderate 0.3% 

This moderation was attributed to a decline in prices for used cars and trucks 

Despite the CPI data, market sentiment remained unchanged regarding the Federal Reserve's upcoming policy announcement scheduled for September 19-20 

According to CME's FedWatch Tool, there is a 97% probability that the Federal Reserve will keep rates steady, up from 92% on the previous day 

Expectations for a 25 basis point rate hike at the November meeting, which had been increasing earlier in the week, slightly decreased to 40.8% from 41.1% 

Marvin Loh, a senior global macro strategist at State Street in Boston, expressed that the CPI data did not significantly alter the overall narrative regarding rate hikes