The dollar gained ground on Wednesday after weak U.S. retail sales data boosted bets on an imminent Federal Reserve rate cut, while the pound fell ahead of U.K. inflation data later in the day.
Data on Tuesday showed U.S. retail sales barely increased in May, and data for the previous month was revised downward sharply, suggesting economic activity remained weak in the second quarter.
The euro fell slightly to $1.0736 in its latest transactions, while the dollar index stabilized at 105.28.
Sterling fell 0.02 percent to $1.2706 ahead of UK inflation data later on Wednesday, which comes ahead of a Bank of England policy decision on Thursday when it is expected to keep interest rates unchanged.
The Australian dollar was strong against the greenback, last up 0.12% at $0.6664, adding to a 0.66% gain in the previous session. In contrast, the New Zealand dollar fell 0.19% to $0.6133.
The Japanese yen was little changed at 157.83 against the dollar.
