The yen’s USD/JPY pair steadied at 147.46 yen, while the Australian dollar’s AUD/USD pair dropped 0.2%

Most Asian currencies weakened slightly on Thursday, while the dollar steadied from a whipsaw session amid growing bets on lower U.S. interest rates ahead of the country’s consumer inflation data due later in the day.

The yen was muted after a mixed U.S. producer price index inflation figure, which showed prices remaining sticky but dropping slightly in August from the prior month.

Asian currencies were sitting on some overnight gains after softer-than-expected U.S. PPI inflation data furthered bets that the country’s central bank will lower interest rates when it meets next week.

But caution ahead of Wednesday’s consumer price index figures quashed overall gains, while also spurring sharp swings in the dollar.

The yen’s USD/JPY pair steadied at 147.46 yen on Thursday, showing limited reaction to the mixed PPI print.

U.S. government data showed PPI inflation dropped 0.2% month-on-month in August, slightly more than expectations for a decline of 0.1%. But year-on-year PPI gained slightly to 2.7%.

The figure showed wholesale inflation in Japan remained relatively sticky– a trend that could spill over into CPI inflation, data on which is due next week.

Sticky inflation gives the Bank of Japan more impetus to hike interest rates. But bets on such a scenario were battered this week following Prime Minister Shigeru Ishiba’s unexpected resignation, which portends more political upheaval in Japan.

The Singapore dollar’s USD/SGD pair gained 0.1%, while the won’s USD/KRW pair was flat.

The Australian dollar’s AUD/USD pair dropped 0.2% after racing to a 10-month high this week.

The Indian rupee’s USD/INR pair added 0.1% and remained close to record highs, as speculation over further U.S. trade tariffs weighed on Indian markets.