While the British pound and the Chinese yuan are down, the dollar and the rupee have remained unchanged.

Sterling fell on Wednesday due to the strengthening dollar, as investors await the release of the Federal Reserve's preferred inflation measure on Friday. Sterling fell by 0.2% to $1.2661, the level at which it traded over the past two weeks. The pound was one of the best performers this year, falling by only 0.4% against the dollar, compared to a fall of 3% for the euro and 13% for the yen

The Chinese yuan weakened to a new seven-month low on Wednesday against an overall stronger dollar, with weaker central bank forecasts also weighing on the currency and putting it on track for its sixth consecutive monthly decline in June. Around 03:10 GMT, the yuan was down 0.04% to 7.2659 per dollar after trading in a range of 7.2620 to 7.2663. The spot yuan opened at 7.2620 per dollar and was last trading 31 pips less than the previous end-of-trading close and 1.98%

The dollar was firm on Wednesday and traded at the edge of the 160 yen barrier as investors became cautious and counted down to the release of U.S. price data at the end of the week.

The Australian dollar rose on Wednesday after data showed that inflation accelerated much more than expected in May, hurting bonds as investors anticipated a higher risk of a new one rising interest rates.

The Indian rupee is expected to open largely unchanged on Wednesday, with a focus on the expiration of monthly currency futures and the upcoming inclusion of Indian bonds in the JPMorgan Emerging Market Debt Index.