Dollar backs off 13-month peak ahead of US inflation data and Fed minutes

The US dollar fell against its peers on Wednesday, and gave up its 13-month peak hit yesterday on profit-taking, and ahead of key US inflation data, and the release of the US Fed meeting minutes.

The dollar index fell more than 0.25% to 94.25 points, after opening at 94.51 points, and hit a high at 94.53 points.

The index gained 0.2% yesterday, the second straight daily gain, and hit its 13-month high of 94.56 points.

The 10-year US Treasury yield fell 0.5% today, deepening losses for the second straight day, and pulled back further from a 4-month high of 1.636%, which weighs down on demand for the greenback.

At 12:30 GMT, the US consumer price index is expected up by 5.4% y/y in September from 5.3% in August, and the monthly reading is expected at 0.3% unchanged from the previous reading.

And by 18:00 GMT, the Federal Reserve will release the minutes of its last September's meeting, during which the central bank hinted the possibility of starting taper the bond-buying program soon.