The dollar was unchanged against a group of its peers as forex investors remained careful ahead of the U.S. inflation data later in the session, which is expected to establish the greenback’s short-term direction.
The dollar index was unchanged at 95.766 and is slated to end the weak down 0.25 percent. The greenback was slightly higher at 113.425 yen but still far from the four-month peak of 114.495 hit on Tuesday.
The dollar’s recent advance, particularly versus the yen, has ended toward the end of this week as Federal Reserve Janet Yellen tempered some of the monetary tightening bets that has boosted the U.S. currency.
Indications of a rise in U.S. inflation could solidify views that the Fed would hike federal fund rates once more sooner than later, which in turn would drive up Treasury yields and the dollar.
But the core consumer price index is projected to have increased by only 1.7 percent year-on-year in June after posting a similar increase in May. On a monthly basis, core CPI is anticipated to increase 0.2 percent after a 0.1 percent rise in the prior month.
The material has been provided by InstaForex Company – www.instaforex.com