REUTERS, London/Singapore

Currency markets took a breather on Wednesday, with traders cautious over US President Donald Trump’s efforts to bring an end to the war with Iran.

While ‌Trump told reporters at the White House the US was making progress in talks with Iran, Tehran denied that direct negotiations have taken place, keeping investors on edge.

The US dollar index, which measures the greenback’s strength against a basket of six currencies, was last 0.13 percent higher at 99.317, with the euro little changed at $1.1603.

The British pound was 0.16 percent weaker at $1.3388 as data showed that British consumer price inflation held at an annual rate of 3.0 percent in February, unchanged from January’s rate. However, inflation is broadly expected to pick up as the war in the Middle East pushes up prices.

The subdued volatility contrasted with a pickup in equities and a fall in crude oil prices after Trump said on Tuesday the US was making progress in its efforts to negotiate an end to the war.

“For those reacting to every breaking headline around dialogue between the US and its allies and Iran, including speculation of high-level talks and temporary ceasefire proposals, an element of ​fatigue is now firmly setting in,” said Chris Weston, head of research at Pepperstone Group Ltd in Melbourne.