The dollar index was around flat at 103.92, not far from the high of 104.49 reached at the start of the week for the first time since December 2002
The dollar hovered near a two-decade high against major peers on Wednesday, ahead of a key reading on inflation that should provide clues on how aggressive the Federal Reserve will be in tightening monetary policy.
The dollar index, which measures the currency versus six rivals, was around flat at 103.92, not far from the high of 104.49 reached at the start of the week for the first time since December 2002.
The euro languished at 1.05305, continuing to trade mostly sideways since plumbing a more than five-year low at 1.04695 at the end of last month.
The yen continued to get some respite from a pause in the recent relentless rise in benchmark U.S. Treasury yields, trading little changed at 130.40 per dollar, after dipping to a more than two-decade low of 131.35 on Monday.
Investors will be closely watching the April U.S. consumer price index reading later on Wednesday for any signs inflation may be starting to cool, with expectations calling for an 8.1% annual increase compared with an 8.5% rise recorded in March.
After the Fed raised its benchmark overnight interest rate by 50 basis points last week, the largest hike in 22 years, investors have been attempting to assess how aggressive the central bank will be.
Markets are priced for another hike of at least 50 basis points at the central bank’s June meeting, according to CME’s FedWatch Tool.
The greenback has climbed nearly 9% this year amid an increasingly hawkish Fed, as inflation rose more than policymakers had expected.
The Aussie ticked up 0.17% to $0.6951 on Wednesday, but not bouncing much from the 22-month trough of $0.6911 touched on Monday.
Sterling also struggled near a 22-month low at $1.2262 from the start of the week, last trading flat at $1.2323.