NEW YORK: The dollar ticked higher on Wednesday, rebounding from a slight dip after a tame US inflation report, while traders looked to an auction of US 10-year Treasury bonds later in the day that could spark volatility in currency markets.

US consumer prices posted their biggest annual gain in a year, though underlying inflation remained tepid amid sluggish demand for services like airline travel, the data showed.

The move was largely inline with economists’ expectations, though core inflation rose 0.1%, versus market forecasts of a 0.2% rise.

The dollar index was up 0.026% at 92.022, having edged lower earlier in the session following the CPI numbers.

Riskier currencies including the Australian and New Zealand dollars edged lower after logging big gains on Tuesday on rising prospects for the global economic recovery.

The euro was down 0.06% at $1.18915 ahead of a meeting of the European Central Bank on Thursday.