Global Currencies: U.S. Dollar Nears Two-Week High Amid Federal Reserve Speculations

The U.S. dollar approaches a two-week high against the yen, traders await U.S. inflation data for Federal Reserve rate cut clues. Australian and New Zealand dollars remain low after dovish central bank outlooks. Several global central banks are eyeing potential rate cuts, impacting major currencies worldwide.

The U.S. dollar traded near a two-week high against the yen on Wednesday as anticipation grew around U.S. inflation data that could influence Federal Reserve interest rate decisions.

Meanwhile, after a dovish shift in the central bank's stance, the Australian dollar hit a four-month low, impacting New Zealand's kiwi as well. Attention is also on China's Central Economic Work Conference, set to unfold this week.

Globally, investors are keenly parsing through central bank communications, with pending rate decisions in both Europe and North America likely to influence the currency market directions in the coming days.

(With inputs from agencies.)