The dollar backed off a three-month peak on Wednesday as investors waited for key economic data, while bitcoin sat close to a record high as traders raised their bets on a Donald Trump victory in next week's presidential election.

Meanwhile, the euro ticked up from a three-month low as inflation and growth data from the euro zone trickled in, and the pound held steady ahead of the new Labour government's first budget.

The U.S. dollar index , which measures the currency against six major rivals including the yen and euro, was last down 0.1% at 104.16, after reaching the highest since July 30 at 104.63 on Tuesday before finishing the day almost flat.

The 10-year Treasury yield fell to 4.232% on Wednesday, after reaching the highest since July 5 at 4.339% in the prior session.

The dip in Treasury yields pushed the dollar 0.15% lower against the yen to 153.15 yen. The yen was on track for its biggest monthly fall against the dollar since 2022, however, as U.S. economic strength and dwindling expectations of another Bank of Japan rate hike have hit the currency.

Sterling was flat at $1.3002, after earlier touching a nine-day peak, ahead of the Labour government's first budget on Wednesday.

The Aussie dollar dropped as low as $0.6537 for the first time since Aug. 8, after data showed inflation slowed to a 3-1/2-year low, before trading 0.27% weaker at $0.6578.

The Reserve Bank of Australia's preferred inflation gauge, the trimmed mean measure, slowed to 3.5% from 4.0% in the third quarter, but service-sector inflation remained elevated.

Source: Reuters