New york: The dollar steadied near a one-week high today as risk appetite waned following higher-than-expected US inflation data that pushed Treasury yields higher, while oil edged up on renewed uncertainty over the Middle East conflict.

According to Oman News Agency, the euro traded at $1.1735 and sterling at $1.3532, both down about 0.05 percent against the dollar in early Asian trading. The dollar index, which measures the US currency against a basket of six major rivals, held at 98.335, near its strongest level in a week.

US consumer prices rose 3.8 percent in the 12 months through April, marking the largest annual increase since May 2023. The two-year Treasury yield, which typically moves in line with Federal Reserve interest rate expectations, rose to 3.9956 percent. The benchmark 10-year yield climbed to 4.4688 percent.

Markets have largely priced out any chance of a Fed rate cut this year, while expectations of at least a 25-basis-point rate hike at the central bank's December meeting rose to 35 percent, according to the CME's FedWatch tool.

The Australian dollar traded at $0.72365 and the New Zealand dollar at $0.5954, both largely steady. The Japanese yen also held steady at 157.715 per dollar after a sharp move higher on Tuesday sparked speculation of a 'rate review' by authorities - often a precursor to intervention to support the currency. The Chinese yuan traded at about 6.79 per dollar, near its strongest level since February 2023.