The greenback advanced to new three-month peak versus its pairs as traders eliminated the possibility of early interest rate cut as the US inflation figures that spiked beyond projections.

The dollar index that gauges the greenback versus its major pairs advanced by 0.05% at 104.9.

US CPI for January rose by 3.1% from the previous year, while expectations hovered around 2.9% rise, money markets have factored in a 53% possibility of a Fed cut in June and no cut in March.

EUR/USD dipped 0.06% at $1.0702, post edging down to new three month low of $1.0695.

Economic growth in the eurozone steadied the last three months of 2023 compared to the earlier quarter and rose 0.1% against the same period of 2022.

GBP/USD edged up by 0.35% to $1.2548, hitting eight-day peak following the release of UK inflation figures that did not advance as projected for January.

USD/JPY slipped 0.1% to150.60 yen, and was close to three-month peak touched on Tuesday.