Fed rhetoric restrains dollar as focus stays on inflation By Reuters – Investing.com

Fed rhetoric restrains dollar as focus stays on inflation By Reuters – Investing.com

By Ritvik Carvalho

LONDON (Reuters) - The U.S. dollar hovered above a 2-1/2-month low versus major peers on Wednesday, as traders hung on to bets that the Federal Reserve would remain steadfast in its easy policy settings ahead of data expected to show a sharp rise in annual U.S. inflation.

Analysts forecast figures due at 1230 GMT to show a 3.6% lift in year-on-year prices, boosted by last April's low base. The month-on-month forecast is for a modest 0.2% rise.