Higher energy prices strengthened expectations that inflation could remain persistent, with markets now pricing a 61% chance of a September Fed rate hike, while both the Fed and ECB are expected to leave rates unchanged at their upcoming meetings.

The euro stayed near a one-year low, sterling slipped after softer UK inflation, and the yen remained close to a four-decade low despite growing expectations of further BOJ tightening. Meanwhile, the offshore yuan strengthened on continued progress in China's internationalization efforts.

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