The dollar found some support on Wednesday after stubbornly...

The dollar found some support on Wednesday after stubbornly high U.S. inflation suggested interest rates are going to remain high for longer than investors had expected.

Headline CPI was 0.5% in January mostly due to higher rental and food costs. That was in line with forecasts, though the annual figure of 6.4% was a bit more than expected and traders busily unwound bets on rate falling toward the end of 2023.

The U.S. dollar climbed to a six-week high of 133.30 yen JPY=EBS and sat not far below that at 132.73 early in the Asia session. Other currency pairs were a bit more volatile but the greenback, which fell steadily in January, is holding its own.

"Inflation remains too high," Commonwealth Bank of Australia strategist Joe Capurso said.

"A tentative deceleration in inflation is now harder to discern. There is not much good news for (the Fed) that is looking for inflation to head down much further towards its 2% target."

Federal Reserve officials said the U.S. central bank will need to keep gradually raising interest rates to beat inflation.

"We must remain prepared to continue rate increases for a longer period than previously anticipated," Dallas Fed President Lorie Logan said.

The euro EUR=EBS was bumpy but ultimately unable to advance on the greenback and stayed at $1.0734. The U.S. dollar index =USD hovered around its 50-day moving average at 103.26.

U.S. Treasuries were also volatile after the data, but selling persisted at the short end and in Fed funds futures to reflect new expectations that U.S. interest rates will rise beyond 5.2% this year and remain above 5%. FEDWATCH

The New Zealand dollar NZD=D3 fell a little to $0.6338. The Australian dollar AUD=D3 moved bumpily sideways also, with traders focused now on an appearance by central bank chief Philip Lowe before a parliamentary committee.

Later in the day British inflation is due, with a consensus forecast for annual headline CPI at a whopping 10.3% - more than five times the Bank of England's 2% target.

Sterling GBP=D3 was boosted overnight by strong wages data and last bought $1.2178. U.S. retail sales figures are also due and will gauge how the U.S. consumer is bearing the 450 basis points of Federal Reserve rate hikes in the past year.

	======================================================== 
	Currency bid prices at 0051 GMT 

 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
											  Previous				   Change				  
											  Session											
 Euro/Dollar	   EUR=EBS																	   

							  $1.0737		 $1.0737	+0.00%		  +0.20%	  +1.0739	 +1.0731 
																								 
 Dollar/Yen		JPY=EBS																	   

							  132.7350		133.0200   -0.12%		  +0.00%	  +133.0900   +132.8200 
																								 
 Euro/Yen		 
				  S>		  142.53		  142.89	 -0.25%		  +1.59%	  +142.9600   +142.4900 
																								 
 Dollar/Swiss	  CHF=EBS																	   

							  0.9215		  0.9215	 +0.03%		  -0.31%	  +0.9220	 +0.9214 
																								 
 Sterling/Dollar   GBP=D3																		

							  1.2176		  1.2176	 +0.02%		  +0.00%	  +1.2180	 +1.2172 
																								 
 Dollar/Canadian   CAD=D3																		

							  1.3343		  1.3338	 +0.04%		  -1.52%	  +1.3346	 +1.3336 
																								 
 Aussie/Dollar	 AUD=D3																		

							  0.6979		  0.6985	 -0.08%		  +2.39%	  +0.6989	 +0.6977 
																								 
 NZ				NZD=D3																		

 Dollar/Dollar				0.6327		  0.6338	 -0.16%		  -0.34%	  +0.6338	 +0.6326 
																								 
																								 
 All spots  FX=  
Tokyo spots  AFX=  Europe spots  EFX=   Volatilities  FXVOL=   Tokyo Forex market info from BOJ  TKYFX  
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World FX rates	https://tmsnrt.rs/2RBWI5E 

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