The US dollar edged lower against major currencies on Wednesday, as investors awaited US producer price data, with expectations that the figures would reveal a further slowdown in the pace of annual inflation.
The dollar index, which measures the performance of the US currency against a basket of six major currencies, fell by about 0.1% to trade near the 100.80 level, amid clear caution in the markets ahead of the release of new economic data.
This decline came after data showed that annual inflation for US consumer prices slowed in June at a faster pace than expected, along with the index falling on a monthly basis for the first time since April 2020, driven mainly by falling energy prices.
Meanwhile, a sense of anticipation prevailed among investors following Federal Reserve Chairman Kevin Warsh's testimony before the US House of Representatives, as he stressed that the central bank would not accept continued high inflation rates, affirming its commitment to continuing to carry out its duties and maintaining price stability even under political pressure.
In currency markets, the euro rose 0.15% against the dollar to $1.1437, while the British pound climbed by the same percentage to $1.3413. The dollar held steady against the Japanese yen near 162.16 yen, and traded at 0.809 Swiss francs against the dollar.
