The greenback inched up on Wednesday, facing difficulty to gain more momentum due to uncertainty surrounding the trade outlook, while the pound weakened following mild inflation data and in anticipation of the upcoming U.K. fiscal update.

The dollar index that gauges the greenback versus its major pairs added 0.1% to 103.887 but is set for a plunge by 4% during the Q1 of 2025.

The US dollar edged up a bit on Wednesday, but the gains were hard-earned following the release of weak U.S. confidence data and concerns about the impact of broad tariffs on U.S. economic growth.

EUR/USD dipped 1.0791, pulling back from last week’s five-month peak, the euro showed little immediate response to the U.S. agreements with Russia and Ukraine to halt attacks on maritime and energy targets.

GBP/USD slumped by 0.4% to 1.2889, after British inflation slowed more than anticipated in February, offering some relief to Chancellor Rachel Reeves before her upcoming fiscal update later on Wednesday.

USD/JPY advanced by 0.2% to 150.12, the yen edged down slightly, despite the BoJ governor’s statement on Wednesday that interest rates would need to increase if persistent food price hikes lead to wider inflation.