Dollar Steady as Crypto Falls Ahead of US Inflation Data

The US dollar and major currencies stabilized at the start of Asian trading on Wednesday, according to the Emirates News Agency (WAM). Cryptocurrencies declined modestly, with Bitcoin and Ethereum both registering small losses.

According to Reuters, the dollar’s stability came despite new attacks targeting two vessels in critical Middle Eastern waterways. Financial markets are now focused on the upcoming release of US inflation data later Wednesday, seeking signals about the Federal Reserve’s interest rate path. Last week’s weaker-than-expected US jobs report—and Federal Reserve Chair Jerome Powell’s press conference last month—failed to dispel market uncertainty, Reuters reported.

Yen hovers near monthly lows amid joint intervention

The Japanese yen remained unchanged against the US dollar at 159.275 yen, hovering near its lowest level this month. This occurred despite recent coordinated intervention by US and Japanese authorities aimed at supporting the yen. The euro held steady at $1.1542. The British pound showed little movement, trading at $1.3508. The Australian dollar and New Zealand dollar also held firm at $0.7064 and $0.5879, respectively.

Dollar retreats slightly against the yuan

According to Germany’s Deutsche Presse-Agentur (dpa), the US dollar weakened against the Chinese yuan during Wednesday’s trading session, settling at 6.7882 yuan per dollar—a decline of 18 basis points from Tuesday’s rate of 6.7900 yuan, per data from China’s Foreign Exchange Trading System.

Chinese regulations permit the yuan to fluctuate up to 2% above or below the People’s Bank of China’s daily reference rate in onshore spot foreign exchange trading, Xinhua News Agency reported. That reference rate is calculated based on bid prices submitted by major financial institutions before the interbank market opens each trading day.

Markets await US inflation reading for Fed clues

Reuters noted that this week’s market attention centers on the US inflation data due for release later Wednesday. Traders are looking for direction on the Federal Reserve’s next move on interest rates. Analysts at ING wrote that inflation is expected to decline gradually through the remainder of 2026—assuming oil prices remain contained and the Strait of Hormuz reopens. They added that markets already anticipate a smooth downward trajectory for inflation.

Oil rises amid waterway tensions

Oil prices edged higher as Asian trading resumed Wednesday. According to Reuters, Brent crude rose 0.6% to $89.40 per barrel following a Houthi attack on a cargo ship in the Bab el-Mandeb Strait and a US military strike on a container vessel off Pakistan’s coast attempting to breach the Strait of Hormuz blockade.

Crypto losses narrow

In cryptocurrency markets, Bitcoin fell 0.2% to $63,554.30, while Ethereum declined 0.1% to $1,879.62, WAM reported.