Dollar set for weekly drop as traders cut wagers on rate hikes

The dollar held steady on Friday, facing a weekly decline after softer U.S. inflation data. Traders reduced bets on imminent Federal Reserve rate hikes following the inflation report. Escalating Middle East attacks spurred safe haven bids for the dollar and boosted oil prices. The euro and sterling were set for weekly gains against the U.S. dollar. Investor attention will focus on a speech from U.S. President Donald Trump.