WASHINGTON (dpa-AFX) - The U.S. dollar traded weak against most of its major rivals on Wednesday, weighed down by a drop in treasury yields and on optimism about global economic growth.
Traders were a bit cautious as they looked ahead to the inflation data, due on Thursday. Economists expect inflation may have risen 7.3% annually in January.
San Francisco Fed President Mary Daly told CNN that inflation could get worse before going to get better. Daly added that the Fed is unlikely to be overly aggressive on rate increases.
The dollar index dropped to a low of 95.38 before recovering some lost ground. The index is hovering around 95.55, down nearly 0.1% from the previous close.
Against the Euro, the dollar weakened to $1.1426, losing marginal ground.
The dollar firmed to $1.3535 against Pound Sterling, from $1.3544, and was little changed against the Japanese currency, fetching 115.54 yen a dollar.
In U.S. economic news today, a report released by the Commerce Department showed another sharp increase in U.S. wholesale inventories in the month of December.
The Commerce Department said wholesale inventories shot up by 2.2% in December after jumping by 1.7% in November. Economists had expected wholesale inventories to surge by 2.1%.
The continued spike in wholesale inventories came as inventories of durable goods soared by 2.6% and inventories of non-durable goods leapt by 1.6%.
Meanwhile, the report showed wholesale sales edged up by 0.2% in December after surging by 1.7% in November.
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