Dollar Stagnates Amid Inflation Data Anticipation

The US dollar traded sideways in early Asian dealings on Wednesday as currency markets awaited the release of inflation data for clues to the Federal Reserve's next move. The main focus this week is on the US inflation data due later on Wednesday, which will provide insights into the direction of Federal Reserve interest rates.

Last week's softer-than-expected jobs report and a press conference by Fed Chair Kevin Warsh did little to dispel doubts about the central bank's stance. ING analysts wrote that there is a path ahead for easing in inflation as oil prices remain contained and the Strait of Hormuz reopens, with markets already discounting a mild inflation landing.

The U.S. dollar index, which measures the greenback's strength against a basket of six currencies, was up 0.1% at 99.858. Oil prices edged up as trading resumed in Asia on Wednesday, with Brent crude 0.8% higher at $89.61 a barrel after an attack by Iran-backed Houthis on a cargo ship in the Bab el-Mandeb strait.