Currency markets were in anticipation while the dollar fell slightly on Tuesday ahead of US inflation data which traders believe may give indications of the timing of stimulus reduction and interest rate hike.
According to Reuters, the possibility of a rate hike, sparked by a sudden change in tone from the US Federal Reserve last month, has supported the dollar in recent weeks as investors reassessed the assumption that Interest rates will remain low for a long time.
Against the euro, the US currency fell a little during the Asian session to $1.1868, but it remains up 2.2% against the single currency in a month.
Economists polled by Reuters expect the US consumer price index to have risen 0.5% from May to 4.9% compared to a year ago.
Traders believe that any change from expectations will lead to a move in the dollar and in the bond market as a result of a change in expectations regarding interest rates.
In the latest trading in Asia, the Japanese currency recorded 110.37 yen against the dollar and the Swiss franc settled at 0.9146 against the dollar, close to its highest level in a month.
The Australian dollar rose slightly to $0.7491 and the British pound rose 0.1 percent to $1.3895.
Apart from inflation, more tests of the US currency are looming from testimonies of Federal Reserve officials, with the market very sensitive to any talk of an early easing of stimulus.
US Federal Reserve Chairman Jerome Powell will testify before Congress on Wednesday and Thursday.
The New Zealand dollar was last up 0.1% at $0.6993, below its 20-year moving average.
The Chinese yuan climbed to a nearly one-week high after surprisingly strong trade data eased concerns about a slowdown in the world's biggest economic recovery.
The Chinese currency was trading in the latest trading at 6.4655 per dollar.
The dollar index settled at 92.222. Cryptocurrencies came under pressure, Bitcoin fell 1% to $32,789, and Ether fell from its 200-day moving average to $1990.
