The dollar drifted sideways on Wednesday, giving some relief to the Japanese yen and other major currencies after a sharp rally to a seven-week high last week, as investors paused to assess the interest rate outlook for the United States.

The dollar index, which measures the greenback against a basket of currencies, was flat at 102.490, not far from Fridays seven-week high of 102.69.

With the dollar settling, the euro steadied around $1.0977, while the pound was at $1.3101. Dollar/yen traded in a narrow range, last hovering around 148.28 yen.

The offshore yuan stabilized around 7.0695 per dollar. The New Zealand dollar slumped to its lowest since Aug. 19 at $0.6096, after the Reserve Bank of New Zealand cut interest rates by 50 basis points.

Source: Qatar News Agency