The dollar was supported on Wednesday, May 29, by growing expectations that the Federal Reserve will not cut interest rates until later this year ahead of the release of important US economic data on inflation this week, while the yen touched a four-week low.
The dollar rose after U.S. Treasury yields rose following lackluster sales of two- and five-year bonds, raising doubts about demand for U.S. government debt.
Euro and other currencies
The euro fell 0.09% to $1.0848 but is on track for its first monthly gain this year, up 1.7% this month. Sterling was last at $1.27525, on track for a 2% gain in May.
The dollar index, which measures the greenback against six major currencies, was little changed at 104.7, off a near two-week low of 104.33 touched on Tuesday. The index fell 1.5 percent in May.
The Australian dollar was little changed at $0.66485 after consumer price inflation in Australia unexpectedly rose to a five-month high in April, raising the prospect of an interest rate hike.
The yen touched a four-week low of 157.41 per dollar early on Wednesday as the Japanese currency returned to levels that prompted suspected interventions by Tokyo in late April and early May. The yen was last at 157.255 per dollar.
