The dollar index is trading slightly on the back foot on Wednesday as US PPI data came in softer-than-expected sparking fresh possibility for Fed to cut rates. Data published on Tuesday showed that the US annual PPI rose 3.3% in December, missing the expected 3.4% growth, while the core PPI inflation rose to 3.5% in the same period, compared to the estimates of 3.8%. Nevertheless, higher US treasury yields are limiting any sharp drop in greenback. Investors are all eyes upon the release of the all-important US Consumer Price Index (CPI) data for December, which is expected to provide fresh insights on the US Federal Reserve's (Fed) interest rates trajectory. Currently, DXY that measures the greenback against a basket of currencies is seen quoting at 108.90, down 0.20% on the day and off recent fresh two-year peaks. Among basket currencies, EURUSD and GBPUSD are both rebounding amidst dollar weakness and trading slightly higher by 0.1% at $1.0337 and $1.2213 respectively.
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