The dollar consolidated on Wednesday ahead of a key inflation report later in the day, while the yen remained a whisker away from what markets believe to be the line in the sand for Japanese authorities to intervene. The kiwi, meanwhile, briefly jumped to a three-week high after the Reserve Bank of New Zealand kept rates on hold, as expected, but warned of persistent inflation. The main market focus on Wednesday is U.S. consumer price inflation for March, which traders have been eagerly awaiting for hints on the Fed's policy outlook. The inflation data follows a strong jobs report last Friday that blew past forecasts, raising questions on how soon and how much the central bank will cut rates this year. Futures traders reduced bets to the lowest level since October, around 60 basis points in rate cuts this year, LSEG data showed on Monday, amid evidence of continued strength in the U.S. economy. Ahead of the data, U.S. interest rate futures set the odds of the first cut occurring in June at about 60%, up from 51% on Monday, according to CME Group's FedWatch tool, although the possibility of a hold has bumped up to 40%. A solid CPI number will likely have markets pricing out a June cut, which could see the dollar rising sharply, said Carol Kong, a currency strategist at Commonwealth Bank of Australia. The U.S. dollar index , which measures the greenback against six rivals, held firm at 104.12. The yen remained close to its 34-year low versus the dollar ahead of the data, as Bank of Japan Governor Kazuo Ueda brushed aside market speculation that the yen's sharp falls could force the central bank to raise interest rates. The Japanese currency was mostly flat at 151.74 per dollar. The euro was steady at $1.0852, as the European Central Bank meeting on Thursday fast approaches. The ECB is also expected to hold rates this week, although traders betting the central bank will start cutting in June will be looking for signals from policymakers.