The dollar continued its decline on Wednesday, retreating from 18-month highs against the euro. Investors are closely watching for new signals on the timing of interest rate hikes as inflation remains a concern.
Traders are eagerly awaiting U.S. inflation data and comments from Federal Reserve policymakers to gauge the pace of future monetary policy tightening. The euro saw a slight rise as European Central Bank President Christine Lagarde ruled out intervention to support France's struggling bond market.
However, gains in the euro were limited by Brent crude prices holding steady at $106 per barrel. The market remains focused on the upcoming economic indicators and central bank communications for further direction.