The U.S. dollar was near flat on Monday in Asia as rising inflation failed to deter expectations that the Federal Reserve will cut interest rate this month.

The U.S. dollar index that tracks the greenback was little changed at 96.472 by 1:08 AM ET (05:08 GMT).

On Friday, it was shown that U.S.’s producer price index for final demand edged up 0.1% last month. It was previously expected that the number would remain unchanged.

The data came after Fed Chairman Jerome Powell told lawmakers last week that the central bank is concerned about weak inflation and other uncertainties.

Meanwhile, the AUD/USD pair traded 0.2% higher today following some better-than-expected Chinese data for June, although the country’s Q2 GDP slowed to its weakest annual pace in 27 years.

The Chinese yuan also strengthened against the U.S. Dollar to touch its highest since last week. The USD/CNY pair last traded at 6.8737, down 0.1%.

Xiaojia Zhi, China economist at Bank of America Merrill Lynch (NYSE:BAC), told Bloomberg in an interview that the bank expects the People’s Bank of China to introduce more policy easing.

The USD/JPY pair gained 0.2% to 108.05. Japan’s stock markets are closed today for a holiday.

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