The dollar was little changed after previous gains. The greenback had climbed while equities fell as markets in Asia opened after reports that the explosion that killed two people was caused by a Russian-made rocket.Bidenat the Group of 20 summit to discuss the missile incident which damped earlier positive sentiment from signs that the Federal Reserve may slow interest-rate hikes.
US stocks had rallied on Tuesday after producer price index data undershot estimates, easing inflation concerns and supporting the case for a slowdown in rate hikes. Ain recent days have indicated the central bank could slow the tempo of rate rises while cautioning more work is needed to tame inflation.
“I don’t think we’re at the trough,” said Ann Berry, founder and managing partner of Threadneedle Ventures in New York, speaking on Bloomberg TV about the S&P 500. “I would not be surprised if we hit the 3,600 level again if we see the confidence that has come into the market deflate,” she said, implying a 10% decline from Tuesday’s closing price.