On Wednesday, the US dollar fell, while the Australian and New Zealand dollars quietly consolidated, while the British pound and the rupee were at their highest levels. For its part, the yuan remains stable.

The dollar weakened on Wednesday after a moderate reading of U.S. inflation boosted expectations of a Federal Reserve rate cut next month, with President Donald Trump's attempts to extend his grip on U.S. institutions undermining the dollar on Wednesday. Also the currency.

Consumer prices in the United States rose slightly in July, according to data released on Tuesday, in line with expectations and while the impact of Trump's drastic tariffs on goods prices has so far been limited.

Against the yen, the dollar lost 0.05% to 147.76, while the euro remained stable at $1.1676, after rising by 0.5% in the previous session.

The dollar index settled at 98.08, after falling by around 0.5% on Tuesday.

Australian and New Zealand dollars quietly consolidated on Wednesday, as rising expectations of lower US rates undermined the greenback and offset looser monetary policy in the United States.

The New Zealand dollar was $0.5947 after rebounding from an overnight low of $0.5914.

The Australian dollar is now facing resistance around $0.5971. The sense of risk was boosted by American inflation that did not exceed expectations, which allowed the Australian dollar to withstand lower interest rates from the Reserve Bank of Australia, as well as an accommodative monetary policy outlook

The Chinese yuan held steady against the dollar on Wednesday, with the greenback weakening overnight due to rising expectations of lower US interest rates, while investors awaited key Chinese economic indicators expected later this week.

The spot yuan is allowed to trade 2% on either side of the fixed midpoint each day.

The spot yuan opened at 7.1820 for one dollar and was last traded at 7.1824 at 03:18 GMT, 5 pips firmer than the previous session's close and 0.66% weaker than the midpoint.

The offshore yuan traded at 7.1845 yuan per dollar, up about 0.02% in Asian trade.

The Indian rupee posted its biggest rise in more than a month on Wednesday, as weaker US inflation data boosted hopes of a Federal Reserve rate cut in September, weighing on the dollar.

The British pound hit its highest level in three weeks against the dollar on Wednesday as investors became increasingly convinced that American interest rates should fall more quickly than British rates, following a favorable reading of American inflation.

The British pound, which gained 8.3% this year against the dollar, was up 0.5% to $1.3569, after reaching a session peak of $1.3578, the highest since July 25.

The British pound rose by nearly 2.4% in August against the dollar, which, if maintained, would be the biggest monthly increase since April.