The US dollar traded flat hovering around 1 month high on raising concerns over early rate trims by Fed, meanwhile the pound jumped on inflation figures.

The dollar index that gauges the greenback versus its major pairs added 0.1% at 103.247, lower than 103.55 level touched previously during the day, marking it the highest since December 2023.

After Federal Reserve Governor Christopher Waller stated that although interest rate reductions were expected to occur this year, the central bank was not taking into account any in the short term, noting the U.S. economy's ongoing resiliency, the dollar gained strength late on Tuesday.

Following the Fed's dovish move at the December FOMC meeting, the dollar took a serious fall at the end of 2023. However, unpredictability about when the Fed will begin decreasing interest rates has buoyed the currency recover this year.

EUR/USD dipped 0.1% to 1.0868, close to the lowest level in one month regardless aggressive remarks from a slew of ECB policymakers over the necessity to curb inflation.

GBP/USD advanced by 0.2% to 1.2657 post the UK CPI showed advance not seen in 10 months since December, adding 4.0% on annual basis from the lowest level in November by 3.9%.

USD/JPY edged up 0.5% to 147.90, With a 1% decline in overnight trading, the yen dropped below the 147 mark for the first time in more than a month.