Forex – Dollar Index Hovers at 1-Week Lows With Inflation Data Ahead

Dollar remains under pressure with U.S. data on tap – The U.S. dollar continued to hover at one-week lows against other major currencies on Wednesday, as sentiment on the greenback remained vulnerable ahead of the release of highly-anticipated U.S. inflation data due later in the day.

Investors were eyeing an upcoming report on due later Wednesday for further clues on how fast the Federal Reserve will raise interest rates this year.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 89.58 by 05:20 a.m. ET (09:20 GMT), the lowest since February 6.

was down 0.33% at a 15-month low of 107.46 amid mounting expectations the Bank of Japan will follow the Federal Reserve and the European Central Bank’s examples in normalizing monetary policy despite recent comments to the contrary by the Japanese central bank.

The safe-haven Swiss franc was steady, with at 0.9342.

Elsewhere, the euro was also steady, with at 1.2351, while slipped 0.14% to 1.3869.

In a preliminary report, Eurostat said euro zone gross domestic product expanded in the fourth quarter, in line with expectations. Year-over-year, the economy grew , also as expected.

The Australian and New Zealand dollars were stronger, with up 0.11% at 0.7867 and with climbing 0.58% to 0.7315.

Earlier Wednesday, the Reserve Bank of New Zealand said that inflation expectations ticked up to from 2.0% for the first quarter.

In Australia, the Westpac consumer sentiment index fell in February after a 1.8% rise the previous month.

Meanwhile, slipped 0.11% to trade at 1.2578.

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