Singapore, February 25 (QNA) - The dollar weakened against several major currencies, while the wobbly yen was pinned near a two-week low, and the inflation surprise sent Australia's dollar higher on Wednesday.

The Australian dollar rose 0.7 percent to $0.7109 after a pickup in inflation raised the risk of rate hikes, the sharpest gainer in an Asia session.

Smaller gains for the New Zealand dollar, sterling and euro left the dollar a touch lower, at $1.1796 on the euro and $1.3520 against the British pound.

The yen stayed under further pressure on Wednesday after dropping 0.8 percent overnight to as weak as 156.28 per dollar on a report Japan's prime minister, Sanae Takaichi, raised concerns about additional rate hikes with the Bank of Japan's governor.

The yen hovered around 156 and was last at 155.77.

The New Zealand dollar inched higher to $0.5983, while China's yuan extended sharp Tuesday gains to touch an almost three-year peak of 6.8703. (QNA)