Dollar Holds Steady Ahead of US Inflation Data

The US dollar was relatively stable in early Asian trading on Wednesday, despite ongoing tensions in the Middle East and rising oil prices.

The main focus for markets remains the release of US inflation data later this day, which is expected to provide clues about the direction of Federal Reserve interest rates.

Last week's softer-than-expected jobs report and a recent press conference by Fed Chair Kevin Warsh did little to ease uncertainty over interest rates, with traders remaining split on the Fed's next move.

According to ING analysts, there is a path ahead for easing inflation as oil prices remain contained and the Strait of Hormuz reopens. The US dollar index was up 0.1% at 99.858, while oil prices edged up with Brent crude trading at $89.61 a barrel.