Dollar Holds Steady Ahead of Inflation Data

The US dollar remained steady in Asian trading on Wednesday, awaiting United States inflation data later that day. The greenback was up 0.1% against a basket of six currencies at 98.988, near its three-month high.

Standard Chartered analysts believe the dollar will likely suffer due to an 'incongruous intervention strategy', which may lead to more appetite for carry trades and further downward pressure on the currency.

The Australian dollar climbed 0.3% to US$0.7183, its highest level in three months, following a quicker-than-expected increase in Australia's trimmed-mean Consumer Price Index gauge. This has raised concerns that the Reserve Bank of Australia may deliver another rate hike over the coming months.