Dollar Holds Steady Ahead of US Inflation Data Release

The US dollar held steady against major currencies on Wednesday as markets awaited key economic data from the United States.

Ahead of the release of inflation data, traders are closely watching for clues about future Federal Reserve interest rate decisions. The joint intervention by U.S. and Japanese authorities to strengthen the Japanese currency has had a limited impact so far, with the yen trading near its weakest levels of the month.

Oil prices have edged up due to attacks on shipping in critical Middle East waterways, which is impacting supply concerns. Analysts from ING predict that there may be a path ahead for easing inflation as long as oil prices remain contained and the Strait of Hormuz reopens.