SINGAPORE/LONDON—The dollar dipped on Wednesday with investors expecting U.S. inflation data out later in the day to hold some clues on how soon U.S. interest rates will peak.
Against a basket of currencies, the U.S. dollar index fell 0.1 percent to 102.02.
The U.S. inflation data for March is forecast to come in at 5.2 percent year-on-year, down from 6.0 percent previously, while core inflation likely ticked higher to 5.6 percent, according to a Reuters poll of economists.
After surging almost 3 percent in February, the index fell 2.3 percent in March and 0.5 percent so far in April as the banking turmoil sparked by the collapse of Silicon Valley Bank last month has added to bets that the Federal Reserve would not raise rates as high as previously expected in order to ease stress on the sector….