Investing.com - The dollar slipped lower against a basket of other major currencies on Wednesday, as markets were jittery ahead of the Federal Reserve's monthly policy statement, due later in the day.
Investors eyed the Fed’s rate statement later Wednesday for any clear signal about a possible timeline for hiking interest rates, which have remained close to zero since late 2008.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.08% at 95.15.
EUR/USD edged up 0.09% to 1.1257 after data showed that euro zone consumer price inflation increased by 0.3% last month, in line with expectations and unchanged from a preliminary estimate. Euro zone inflation was flat in April.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose by 0.9% in May, unchanged from an initial estimate and up from 0.9% in April.
But the euro's gains were held in check as concerns over the approaching deadline for Greece’s repayments to the International Monetary Fund persisted.
Europe wants Greece to make spending cuts worth €2 billion in order to secure a deal that will unlock additional funds before its bailout expires at the end of June and it must repay €1.6 billion to the IMF.
A default by Greece could lead to the country’s exit from the euro area.
The pound was also higher, with GBP/USD up 0.58% to one-month highs of 1.5738 after data showed that U.K. average weekly earnings, including bonuses, rose by 2.7% on a year-over-year basis in the three months to April, up from an annualized 2.3% in the previous three month period.
Economists had expected pay to rise by 2.1%. Excluding bonuses, earnings also rose 2.7% from a year earlier.
The number of people in employment rose by 114,000 in the three months to April and the unemployment rate remained unchanged at a six-year low of 5.5%.
At the same time, the minutes of the Bank of England’s June meeting showed that policymakers voted unanimously to keep rates on hold at a record low 0.5%, but the decision continued to be “finely balanced” for two officials.
Elsewhere, the dollar was higher against the yen, with USD/JPY up 0.46% to 123.94 and lower against the Swiss franc, with USD/CHF retreating 0.38% to 0.9286.
The Australian and New Zealand dollars were weaker, with AUD/USD sliding 0.83% to 0.7687 and with NZD/USD down 0.70% to nearly five-year lows at 0.6937.
Meanwhile, USD/CAD edged up 0.14% to trade at 1.2311.