The U.S. dollar turned in a mixed performance against its major rivals on Wednesday, with traders awaiting U.S. inflation data for more clues on interest rate outlook.
The consumer price inflation report due to be released on Thursday, is expected to show a slowdown in the annual rate of consumer price growth and could have a significant impact on the outlook for interest rates.
On an annual basis, the CPI is expected to come in at 6.5% in December, down from 7.1% in November.
After a couple of Fed presidents signalled more interest rate hikes on Monday, Federal Reserve Governor Michelle Bowman said on Tuesday that the central bank needs to raise interest rates more and added that the bank would hold elevated rates at that level for some time in order to restore price stability.
The dollar index, which climbed to 103.48 in the European session, was at 103.26 a litle while ago, up just marginally from the previous close.
Against the Euro, the dollar weakened to 1.0758, down from Tuesday’s close of 1.0735.
The dollar is trading at 1.2150 against Pound Sterling, dropping from around 1.2110 it touched earlier in the session.
Against the Japanese currency, the dollar firmed to 132.88 yen before paring gains and dropping to 132.47, still up 0.17% from the previous close.
The dollar is weak against the Aussie at 0.6909. The Swiss franc shed ground against the dollar, dropping to CHF0.9312 from CHF0.9230.
The loonie is up slightly at 1.3422 a dollar, after moving between 1.3405 and 1.3448.