The dollar saw little movement on Wednesday as markets focused on talks between the United States and Iran to end the war. Traders remained neutral ahead of anticipated US inflation and growth data due later in the week, while caution surrounding the Iranian conflict also weighed on sentiment following renewed US military operations against Iran.
The euro rose 0.1%, while the pound remained virtually unchanged. The dollar-yen pair edged down slightly after rebounding above 159 yen, while the Chinese yuan stayed near its lowest level in three years. The dollar index and related futures contracts were steady in Asian trading after modest gains earlier in the week.
The Australian dollar fell by about 0.3% after April's consumer price index data came in weaker than expected, as a decline in oil prices from their March highs and a key government tax cut helped to ease inflation. However, core inflation data showed a slight increase, suggesting that price pressures have not completely disappeared.
Analysts suggested this reading would reinforce the Reserve Bank of Australia's stance of keeping interest rates unchanged in June, but warned that inflation could rise again later this year, potentially paving the way for further rate hikes. The South Korean won also weakened ahead of the Bank of Korea's anticipated interest rate decision.
