Dollar Steady Ahead of US Inflation Data Release

The US dollar traded steadily on Wednesday as markets awaited the release of inflation data for clues to Federal Reserve interest rates. The yen held steady against the dollar at 159.275 yen, hovering around its weakest levels of the month despite recent joint intervention by U.S. and Japanese authorities to strengthen the Japanese currency.

The euro remained unchanged at $1.1542, while the British pound was also flat at $1.3508. The Australian dollar and New Zealand's kiwi counterpart were both level at $0.7064 and $0.5879 respectively.

Traders are watching a meeting convened by New Zealand Prime Minister Christopher Luxon with National Party lawmakers in Wellington, amid mounting speculation over his leadership just months before a general election.

The main focus for markets this week is on the release of U.S. inflation data due later on Wednesday, which will provide clues to the direction of Federal Reserve interest rates. Analysts at ING wrote that 'there is a path ahead for easing in inflation as we progress through the remainder of 2026', assuming oil prices remain contained and the Strait of Hormuz reopens.