The strong rise in the dollar slowed down on Wednesday. Traders became cautious ahead of the release of a closely watched report on U.S. consumer inflation later in the day, making them hesitant to take new positions. The greenback stabilized at the start of the Asian session after falling overnight and moving away from a peak of more than two years reached against a basket of currencies at the start of the week. Faced with a basket of currencies, the dollar was slightly higher at 109.23, but was far from Monday's peak of 110.17, its highest level since November 2022

Australian and New Zealand dollars enjoyed some relief on Wednesday after a moderate reading of U.S. producer prices held back the U.S. dollar and pulled bond yields from their highs. Australian bulls now hope that a reading of core consumer prices, expected later in the session, will at least match expectations of a 0.2% increase, as any higher number could further limit the scope of U.S. rate cuts and push the greenback up once again. Australian bonds stabilized after 10-year yields briefly climbed to 4.721% on Tuesday, levels not seen since November 2023, before

The naira appreciated against the dollar on the parallel foreign exchange market on Tuesday. Abubakar Alhasan, a currency exchange operator in Wuse zone 4, told the DAILY POST that the naira sold at 1,660 naira for one dollar on Tuesday, up from 1,667 naira on Monday. This indicates that the naira has strengthened by 7 naira against the dollar.