NEW YORK: The dollar was little changed on Wednesday versus the euro and other major currencies as traders held off from making big moves ahead of US inflation data on Thursday, which may offer a clearer picture of where interest rates are headed.
The euro hovered near a seven-month high against the greenback, hit on Monday, as traders bet that the US Federal Reserve will not have to raise rates as fast and as high as earlier thought to tame stubbornly high inflation.
The euro was up 0.3% at $1.07675 against the dollar at 10:00 a.m. EST (1500 GMT).
While the euro has benefited from improved growth prospects in the euro zone, the lack of inflows to the common currency may be due to ongoing risks tied to natural gas supply constraints, said Isabella Rosenberg, an analyst at Goldman Sachs.
Natural gas prices have fallen to their lowest in almost a year-and-a-half amid a mild winter and healthy inventory levels.
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