Dollar near one-month low to yen as inflation test looms

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The dollar held a three-day loss against major peers and traded near a one-month low to the yen on Wednesday, with highly anticipated U.S. inflation data looming that could guide the timing of a Federal Reserve interest rate increase.

The dollar index, which measures the greenback against six rivals, was little changed at 93.997 after retreating gradually from a more than one-year peak at 94.634 reached Friday.

The currency was steady at 112.87 yen after dipping to 112.73 on Tuesday for the first time since Oct. 11.

The euro was also about flat at $1.15915, maintaining a three-day gain that has brought it close to the month’s high of $1.16165.

Economists polled by Reuters see October’s U.S. consumer price index accelerating to 0.4% from the previous month’s 0.2% rise, with the closely watched year-on-year core measure gaining 0.3 percentage point to 4.3%, well above the Fed’s average annual 2% inflation target.

“We’ll need to see a print of 0.8%…

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