The dollar fell for a second straight session on Wednesday, a day after a U.S. inflation reading increased expectations of a Federal Reserve rate cut next month, and renewed pressure from President Donald Trump for lower rates added to the sell-off.

The dollar index, measuring the currency against a basket of peers, fell 0.2 per cent to 97.81, its lowest since July 28, extending its 0.5 per cent drop on Tuesday

The dollar remained weaker after U.S. inflation data on Tuesday cemented expectations for the Federal Reserve to resume cutting interest rates in September. The data showed annual inflation held at 2.