(Adds byline, dateline, recasts first paragraph with CPI data,
comments in paragraphs 4-6, updates prices at 9:15 a.m.)

By Herbert Lash
       NEW YORK, Nov 14 (Reuters) - The dollar weakened on
Tuesday after data for U.S. consumer prices showed signs that
underlying inflation slowed in October, increasing the odds that
the Federal Reserve is done hiking interest rates.
    U.S. consumer prices were unchanged last month amid lower
gasoline prices, the Labor Department's Bureau of Labor
Statistics (BLS) said, following a 0.4% rise in September. 
    In the 12 months through October, the consumer price index
(CPI) climbed 3.2% after rising 3.7% in September, BLS said.
    "You can say goodbye to the rate hiking era," said Brian
Jacobsen, chief economist at Annex Wealth Management in
Menomonee Falls, Wisconsin. 
    Matthew Miskin, co-chief investment strategist at John
Hancock Investment Management in Boston, said the Fed will
likely be in a holding pattern, with inflation moderating and a
weakening labor market.
    "Another rate hike from here looks less likely given this
softer inflation data," Miskin said.  
    The dollar index, a measure of the U.S. currency against six
peers, was down 0.97% at 104.600810. Among major
currencies,  the euro rose 1.13% to $1.0818 and the
Japanese yen strengthened 0.59% to 150.79 per dollar.
    Fed Chair Jerome Powell and other policymakers in recent
days have tried to push back against market expectations that
the U.S. central bank was done with its aggressive rate-hike
cycle. 
    The yen earlier was under pressure after it briefly jumped
against the dollar on Monday - having touched a one-year low -
in a move attributed to a flurry of trading in options rather
than any intervention from Japanese authorities.
    DTCC data from LSEG's Eikon platform shows yen options worth
a notional $3.5 billion with strike prices between 151.90 and
152 are due to expire between Wednesday and Friday.
    Another $2.2 billion notional worth of options with strikes
between 151.90 and 152 will expire between Nov. 20 and the end
of the month.
    Japanese authorities in September and October last year
intervened in the currency market to boost the yen for the first
time since 1998. 
    "Our base case is that we could have intervention if we
break the 152 level for dollar/yen," said Yusuke Miyairi, an FX
strategist at Nomura.
    
    OPTIONS STRIKE PRICES BETWEEN 151.90 AND 152 YEN
 Date of expiry        Nov 15      Nov 16      Nov 17
 Notional value of     2.6         548.7       351.1
 options expiring      billion     million     million
 (USD)                                         
 
    
 (Reporting by Herbert Lash, additional reporting by Sinead
Carew and Chuck Mikolajczak in New York, Alun John in London,
Rae Wee in Singapore. Editing by Christina Fincher, Chizu
Nomiyama and Mark Potter)