Investing.com - The yen and Aussie gained slightly in Asia on Wednesday ahead of price surveys expected to set a tone.
USD/JPY changed hands at 104.08, down 0.14%, while AUD/USD traded at 0.7647, up 0.01%.
In Japan, the corporate services price index likely rose 0.2% year-on-year in September.
In Australia, third quarter CPI is seen up 0.5% quarter-on-quarter and 1.1% year-on-year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.05% to 98.69.
Overnight, the dollar hit multi-month highs against the other major currencies on Tuesday, as expectations for a near-term rate hike by the Federal Reserve underpinned demand, while sterling was pressured lower.
Expectations for higher interest rates typically boost the dollar by making the currency more attractive to yield-seeking investors.
On Monday, Chicago Fed President Charles Evans said the U.S. central bank could raise rates three times between now and the end of next year so long as the inflation outlook and the labor market remain on track.
The Fed’s next meeting is in November, but a rate hike ahead of the presidential election is seen as unlikely.
Investors currently price a 78.3% chance of a rate hike at the Fed's December meeting; according to federal funds futures tracked by Investing.com's Fed Rate Monitor Tool.
The pound regained ground after Bank of England Governor Mark Carney said the bank has to weigh the recent increase in inflation against supporting the economy with low interest rates.
The remarks came as Carney testified about the economic consequences of the Brexit vote before the Economic Affairs Committee in the House of Lords.
Carney also said it is frustrating to have interest rates so low for so long, but added that the bank’s focus is on its remit to get inflation where it needs to be.