Dollar flat after hitting one-month peak on upbeat US data

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The dollar was essentially flat on Wednesday as investors took profits after it reached a one-month high early in the session versus a group of currencies as U.S. data showed robust growth in retail sales and consumer prices in January.

The greenback was on track for its 11th straight day of gains, then retreated as U.S. Federal Reserve Chair Janet Yellen, in her second day of economic testimony before Congress, offered no additional insight on the timing of the central bank's next rate hike.

Dollar to stay strong this week: Expert

On Tuesday, Yellen hinted more rate increases were on the way as the jobs market has improved and inflation has shown signs of nearing the Fed's 2 percent goal.

She cautioned the number of rate hikes partly hinges on the impact from possible tax cuts, infrastrucuture spending and looser regulaton from President Donald Trump and the Republican-controlled Congress.

"With the timing of rate hikes, there is some hesitation in the market," said Sebastien Galy, currency strategist at Deutsche Bank in New York. The dollar index, which measures the currency against its six major peers, was flat at 101.19. It had rallied to a session high of 101.76, its highest since Jan. 12 as data showed a stronger-than-forecast 0.4 percent increase in retail sales in January and a 0.6 percent jump in consumer prices last month, their biggest gain in nearly four years.

"There was not enough momentum so people are taking some profits," Galy said.

USD strength to continue: Strategist

The futures market implied traders have priced in only a 27 percent chance of a rate increase at the Fed's March 14-15 policy meeting and less than a 50 percent chance the Fed would raise rates three times in 2017, according to the CME Group's FedWatch program.

Not all U.S. data were encouraging with industrial output and a gauge on home builder sentiment taking unexpected spills.

The rebounded from an one-month low against the greenback, last up 0.1 percent at $1.0587, while the dollar hovered near a two-week high versus the , last at 114.26 yen.