NEW YORK: The dollar fell against the euro and yen on Wednesday with no major catalysts to drive market direction as investors awaited US inflation data for May due on Tuesday, and the Federal Reserve’s interest rate decision the following day.

The US central bank is expected to hold rates steady as it evaluates the impact of recent rate increases, though Fed fund futures traders are pricing for an additional rate hike in July.

Consumer inflation data on Tuesday is expected to show that prices rose by 0.30% in May.

“We expect a fair degree of consolidation ahead of the Fed decision next week,” said Bipan Rai, North American head of FX strategy at CIBC Capital Markets in Toronto.

The euro was last up 0.30% against the dollar at $1.0726 and the US unit dipped 0.22% to 139.33 yen. The dollar index was down 0.29% at 103.77.

The US dollar was last down 0.39% against the loonie at C$1.3350.

The Australian dollar also continued to gain, a day after the Reserve Bank of Australia raised interest rates by a quarter-point to an 11-year high of 4.1%.

Australia’s central bank chief on Wednesday stepped up a warning of more rate hikes ahead to temper rising price pressures. The Australian currency was last up 0.42% at $0.6700.