The U.S. dollar was trading at one-week lows against other major currencies on Wednesday, as sentiment on the greenback remained vulnerable ahead of the release of high-anticipated U.S. inflation data due later in the day.
Investors were eyeing an upcoming report on U.S. consumer price inflation data due later Wednesday for further clues on how fast the Federal Reserve will raise interest rates this year.
USDJPY was down 0.55% at a 15-month low of 107.24 amid mounting expectations the Bank of Japan will follow the Federal Reserve and the European Central Bank’s examples in normalizing monetary policy despite recent comments to the contrary by the Japanese central bank.
The safe-haven Swiss franc was also stronger, with USDCHF down 0.15% at 0.9330.
The euro was higher as well, with EURUSD up 0.15% at 1.2371, while GBPUSD held steady at 1.3896.
The Australian and New Zealand dollars were stronger, with AUDUSD up 0.23% at 0.7876 and with NZDUSD climbing 0.56% to 0.7314.
Earlier Wednesday, the Reserve Bank of New Zealand said that inflation expectations rose to 2.1% from 2.0% for the first quarter.
In Australia, the Westpac consumer sentiment index fell 2.3% in February after a 1.8% rise the previous month.
Elsewhere, USDCAD slipped 0.16% to trade at 1.2572.