Ammon News - The dollar drifted slightly higher on Wednesday in indecisive trading as a lack of clarity on President Donald Trump's plans for tariffs kept financial markets guessing.

Trump said late on Tuesday that his administration was discussing imposing a 10% tariff on goods imported from China on Feb. 1, the same day that he previously said Mexico and Canada would face levies of around 25%.

He also vowed duties on European imports, without providing further details.

The dollar index , which tracks the currency against six top rivals, was flat at 108.14 as of 0625 GMT.

The dollar rose 0.23% to 155.87 yen , while the euro slipped 0.17% to $1.0410, while sterling eased 0.13% to $1.2343.

Traders expect a quarter-point Fed interest rate cut by July, while another reduction by year-end is considered a coin toss.

The Canadian dollar eased about 0.1% to C$1.4337 versus its U.S. counterpart, following a volatile week that saw it tumble as low as C$1.4520 overnight for the first time since March 2020, feeling additional pressure from cooling inflation last month.

The Mexican peso lost about 0.15% to 20.6430 per dollar.

China's yuan weakened about 0.24% to 7.2865 per dollar in offshore trading, although that was after pushing to the strongest level since Dec. 11 on Tuesday at 7.2530.

Elsewhere, New Zealand's dollar slid 0.42% to $0.5655 after inflation in the fourth quarter grew at an annual rate of 2.2%, comfortably within the central bank's target range of 1% to 3%.

Traders currently see 65% odds that the Reserve Bank will cut rates half a percentage point at its next policy meeting in February.

The Australian dollar fell 0.24% to $0.6258. Reuters