Aug 28 Reuters The dollar held near its lowest in more than a year against a basket of peers on Wednesday, with sterling trading just off multiyear highs, as markets focussed on clues to the size of a widely expected U.S. interest rate cut next month.

Cryptocurrency bitcoin took the spotlight in Asia, dropping over 4 after breaking below support around 60,000.

The Australian dollar rose to an eightmonth high after data showed domestic inflation slowed to a fourmonth low in July, but the general progress on tempering price gains disappointed. It was last flat at .06793.

The Reserve Bank of Australia is unlikely to pivot at the September meeting, which could add another layer of strength for the AUD in the shortterm along with cyclical USD weakness and stable global growth dynamics, said Charu Chanana, Saxo39;s head of FX strategy.

Elsewhere, overall moves in the foreign exchange market were muted as traders awaited fresh hints on the state of the world39;s largest economy.

Investors are unanimous in bets that the Federal Reserve will begin cutting interest rates next month following Chair Jerome Powell39;s dovish tilt last week, with the debate now centred on whether or not it will be a supersized 50basis point cut.

The current pricing sits at a 36 chance for the larger cut, up from 29 a week ago, according to the CME Group39;s FedWatch Tool.

Markets, which are fully priced for a 25basis point cut next month, see just over 100 basis points worth of easing by the…