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Dollar little changed ahead of housing, inflation data

The dollar on Monday finished little changed against most leading currencies as traders looked ahead to key US inflation and housing data later this week.

NEW YORK: The dollar on Monday finished little changed against most leading currencies as traders looked ahead to key US inflation and housing data later this week.

With the US economic calendar Monday devoid of major reports, analysts eyed Tuesday's consumer price index report for June as a potential catalyst for the dollar.

The report follows some other recent data showing higher inflation, although US Federal Reserve Chair Janet Yellen and others have downplayed those reports.

Most analysts do not expect Tuesday's CPI report will pressure the Fed to speed plans to raise benchmark interest rates.

"While we agree that inflation in the US most likely bottomed, it is still not at a level that would accelerate Fed tightening," said Kathy Lien, analyst at BK Asset Management.

The flattening in the US Treasury yield curve suggests "investors do not expect the central bank to take action any time soon," Lien said.

Yellen last week told a congressional committee the Fed could raise benchmark interest rates more quickly than expected if jobs data is unexpectedly strong, but she emphasized the shift would be entirely data dependent.

Other US data this week includes reports on existing home sales and new home sales.

"Further signs of a rebounding US economy could see the greenback add to the gains that last week powered it to five-month peaks against the euro," said Joe Manimbo, senior market analyst at Western Union Business Solutions.

But poor US housing data "could weigh on US yields to the detriment of the dollar," Manimbo added.

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