Dollar index falls 0.39% as inflation data meets forecasts and oil slides 4%

The U.S. dollar index (DXY) fell 0.39% on Friday, its biggest one-day drop since June 11. The greenback has slid 0.44% over two sessions, marking its most notable pullback since early May. A key U.S. inflation reading in line with expectations, alongside a 4% drop in oil prices, has cooled bets on further Federal Reserve tightening this year, with expectations narrowing to about a 25-basis-point hike. The move also unwound part of a three-day rally sparked by hawkish remarks from new Fed Chair Kevin Warsh.