The dollar fell to its lowest level in two weeks on Wednesday, after weak inflation data in the United States bolstered expectations that the Federal Reserve would cut interest rates next month, while attempts by President Donald Trump to expand his influence over American institutions increased pressure on the currency.

The dollar index, which measures the performance of the U.S. currency against a basket of competing currencies, fell to 97.76, its lowest level since July 28, continuing its losses of 0.5% on Tuesday.

Data released on Tuesday showed that consumer prices in the United States rose marginally in July, in line with expectations, while the impact of the broad tariffs imposed by Trump on the prices of goods has been limited so far.

Investors, who are anticipating an imminent rate cut, welcomed this data, pricing in a 98% chance that the Fed would ease monetary policy next month, according to LSEG data.