The U.S. dollar was broadly steady on Wednesday, after a sell-off in some parts of bond markets globally in the prior session weighed on its currency peers and allowed the greenback to gain back some recently lost ground.

Rising concerns over finances in countries from the U.S. to Japan partially helped to drive up longer-dated bond yields, which tend to move inversely to prices.

The uptick in yields has shown signs of easing, with longer-dated European bonds stabilizing, although yields in countries like Germany and France remain close to multi-year highs. Yields on Japanese bonds have also touched an all-time peak.

The U.S. dollar index, which tracks the greenback against a basket of other currencies, was mostly unchanged at 98.36.

Sterling, meanwhile, was also widely steady at $1.3392, after having slipped to a 3-1/2 week low in the prior session. The euro edged up by 0.1% to $1.1656.

The dollar also rose slightly to 148.65 yen, as the Japanese currency took little support from data showing outsized growth in both manufacturing and services activity in August. Earlier this week, the dollar notched its strongest mark against the yen since August 1.

Traders also remained cautious towards risk-driven Asian markets in the face of a legal challenge to U.S. President Donald Trump's sweeping tariffs, which could force Washington into reassessing recent deals struck with major trading partners.

"Yesterday's dollar rally lacked a clear catalyst beyond the selloff in global long-dated bonds," analysts at ING said in a note to clients. "Still, we doubt this will provide sustainable support to the dollar ahead of key data releases and imminent Fed easing."

Investors are keeping close tabs on a slate of economic indicators this week, including the publication of the all-important U.S. nonfarm payrolls report for August on Friday. The figures, along with a survey of job openings and a gauge of private sector hiring, will be among the last available to Federal Reserve officials before their upcoming policy meeting from September 16-17.

Analysts have said that Fed Chair Jerome Powell has all but suggested that the central bank is prioritizing supporting the labor market over inflation worries, fueling bets that the Fed will slash interest rates at the gathering.

SOurce: Investing.com