• The dollar took a breather on Wednesday after falling to a seven-week low against the yen as investors await Federal Reserve Chair Janet Yellen's speech on monetary policy, while sterling gave back some of the previous session's rally.
The greenback added 0.4 percent to 113.05 yen , after hitting a seven-week low of 112.57 yen. The yen had strengthened for seven straight sessions.
• Yellen's speech later on Wednesday, to the Commonwealth Club in San Francisco, could offer clues about the direction of policy.
Investors also awaited the U.S. consumer price index due later on Wednesday. According to a Reuters survey of economists, the CPI probably advanced 0.3 percent last month after gaining 0.2 percent in November.
• Fed Governor Lael Brainard on Tuesday joined the growing chorus of policymakers at the Fed warning that sustained wider budget deficits could fuel inflation.
The dollar index, which measures it against a basket of six major peers, last stood at 100.50, up 0.2 percent, after falling to 100.26 on Tuesday, its lowest since Dec. 8.
The euro slipped 0.2 percent to $1.06970 , after it hit a high of $1.07195 on Tuesday, its highest since Dec. 8.
• China's economy will likely expand 6.5 percent this year as authorities tolerate a further slowdown so they can focus on containing increasing financial risks, but a weakening yuan will complicate their policy choices, a Reuters poll showed.
The forecast would represent only a mild cooling from 2016's expected growth of 6.7 percent, but would likely mark the seventh straight year of slower growth as China looks to reign in excessive debt and increasingly unproductive investment while boosting the consumer sector.
The forecast for 6.5 percent growth this year was unchanged from an October poll.
China's economy picked up towards the end of last year, supported by higher government spending and record bank lending, putting it on track to meet the government's target of 6.5-7 percent growth.
Economists expect China's economy likely grew by a steady 6.7 percent in the fourth quarter of 2016, the same pace as in the previous three quarters, according to a Reuters poll.
China will announce Q4 and 2016 GDP growth on Friday.
• Oil prices rose on Wednesday with a weaker dollar underpinning the market, although gains were limited by expectations that U.S. producers would boost output.
U.S. West Texas Intermediate (WTI) crude oil futures were trading up 17 cents at $52.65 per barrel at 0448 GMT.
Brent crude futures, the international benchmark for oil prices, were up 17 cents $55.64 a barrel.
Reference: Reuters
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