LONDON—Sterling and euro fell against a strengthening dollar ahead of a key U.S. inflation report due later on Wednesday, with traders cautious as markets raised bets for a European Central Bank rate hike on Thursday.
The dollar index, which tracks the currency against six peers including yen, euro and sterling, held firm, though moves were subdued, up 0.13 percent to 104.73, as traders awaited the U.S. consumer price index (CPI) reading for August. The release comes just a week before Federal Reserve officials gather to decide on interest rate policy.
