Dollar Holds Steady as Markets Await Inflation Data
The US dollar traded steadily in early Asian trading on Wednesday, ignoring fresh attacks on shipping in critical Middle Eastern waterways. The dollar's stability was due to market expectations of US inflation data, which is set to be released later that day and could provide clues about Federal Reserve interest rates.
The yen remained unchanged against the dollar at 159.275 yen, hovering around its weakest levels for the month despite a recent joint intervention by US and Japanese authorities to strengthen the Japanese currency. The euro held steady at $1.1542, while the British pound was also flat at $1.3508.
The Australian dollar and its kiwi counterpart were both unchanged at $0.7064 and $0.5879 respectively. Meanwhile, New Zealand Prime Minister Christopher Luxon met with National Party lawmakers in Wellington on Wednesday amid speculation over his leadership ahead of a general election.
Markets are focused on the US inflation data release this week, which could influence Federal Reserve interest rates. Last week's softer-than-expected jobs report and Fed Chair Kevin Warsh's press conference last month did little to dispel doubts about the direction of interest rates.