The U.S. dollar held near its highest level in over a year against the euro on Wednesday, while the Japanese yen languished near four-decade lows, keeping traders on high alert for official intervention ahead of a crucial gathering of global central bankers. The U.S. Dollar Index rose 0.18% to 101.27 in Europe trade, extending gains as resilient U.S. labor market data and climbing Treasury yields reinforced expectations that the Federal Reserve may deliver another interest rate hike later this year. The euro faced renewed downward pressure after fresh data showed Eurozone inflation cooled faster than anticipated last month, with the consumer price index slowing to 2.8% in June from 3.2% in May, below the 3.0% consensus forecast. Monetary policy commentary will take center stage later today at the ECB Forum on Central Banking in Sintra, Portugal, where a panel featuring newly minted Fed Chair Kevin Warsh and ECB President Christine Lagarde is expected to spark markets. The USD/JPY rose to 162.68 after the dollar gained roughly 2.5% against the yen in the second quarter, marking its fourth consecutive quarterly advance, and the persistent weakness keeps markets on high alert for currency intervention by Tokyo.