TOKYO : The dollar steadied on Wednesday after hitting a four-week high against peer currencies overnight as market players awaited key U.S. inflation data and the Federal Reserve's updated interest rate projections due later in the day.
Investors will have a chance to assess the inflation situation when U.S. Consumer Price Index numbers are released at 1830 GMT on Wednesday, just hours before the Fed concludes its two-day policy meeting. "Consensus seems to be that the number of cuts in 2024 will be downgraded from three currently to two" in the latest dot plot, said Kieran Williams, head of Asia FX at InTouch Capital Markets.
The euro was mostly flat at $1.07375. It fell on Tuesday to $1.07195, its lowest level since May 2, as investors continued to react to French President Emmanuel Macron's call for a snap election following gains by the far right in European Parliament elections. The yen held steady at 157.16 per greenback after slipping to its lowest since June 3 at 157.40 the previous day.