Dollar edges lower
U.S. currency floats downward ahead of next week's rate cut decision.
NEW YORK (CNNMoney.com) -- The dollar edged lower against the euro and the yen Wednesday, extending a decline that was sparked by a poor inflation report the previous day.
The 15-nation euro rose to $1.55292 in New York, up from $1.55111 a day earlier. The euro traded slightly lower Wednesday morning after Germany's closely-watched ZEW survey revealed that high food and energy prices in June had driven investor confidence in Europe's biggest economy to its lowest level in 15 years.
The dollar was also buying 107.870 yen, down from 107.9285 on Tuesday evening.
A report from the Labor Department on Tuesday showed that food and energy had driven up wholesale inflation in the U.S. by 1.4%.
Currency prices are unlikely to move significantly until the Federal Reserve reveals what it will do with interest rates next week, according to Stephen Maylon, currency strategist at Scotia Capital in Toronto.
"Overall we're waiting to see what the other shoe to drop might be," he said.
The Fed will release its statement on June 25th following a two-day meeting. Many economists believe the central bank will hold its key bank lending interest rate steady at 2%, but some on Wall Street believe that concerns about inflation could cause the Fed to raise rates.
With oil trading near $140 a barrel and the rising cost of food commodities such as corn, inflation has become an increasing concern for the Federal Reserve.
Last week Fed Chairman Ben Bernanke said that risk of a substantial economic downturn has faded, spurring hopes that the central bank's rate cutting spree has ended. 
