The Dollar’s rally lost momentum on Thursday after softer-than-expected US inflation data prompted traders to scale back expectations of an imminent Federal Reserve rate hike.

The greenback was little changed against the Yen during Asian trading, but remained on track for a roughly 1% weekly gain as investors rebuilt positions in the currency pair after recent US-Japan intervention sent it tumbling to a three-month low.

The Dollar index, which tracks the US currency against the Yen and five other major currencies, was broadly flat at 99.976 and was heading for a 0.4% weekly increase, Reuters reports.

US consumer prices rose 0.1% in July, matching economists’ forecasts. The data prompted markets to scale back expectations for a September rate hike, with the odds falling to 40% from 54% a week earlier, according to CME Group’s FedWatch tool.

The Dollar was trading at 159.35 Yen, hovering near the 160 level that some market participants view as a red line following the rare joint intervention at the end of July. The move helped drive the exchange rate down from a near four-decade high of around 164 to 155.20 within three days.

The Euro was little changed at $1.1525, while Sterling slipped 0.04% to $1.3491 ahead of a raft of UK economic data due later in the day, including GDP figures.

The Australian Dollar fell 0.2% to $0.7048, but remained close to Wednesday’s 10-week high of $0.7091.

Reserve Bank of Australia Assistant Governor Christopher Kent said inflation risks remained firmly skewed to the upside, warning that interest rates would need to rise again if those risks materialised.

The New Zealand Dollar fell 0.4% to $0.5833 after unexpectedly weak inflation expectations raised doubts about the need for aggressive rate hikes. The currency has been gradually retreating after reaching its highest level since early June earlier this month.