The U.S. dollar weakened slightly on Wednesday, but floated around recent levels, as uncertainty swirled around the trajectory of talks to end the nearly three-month old war between the U.S. and Iran.

By 06:13 ET (10:13 GMT), the U.S. dollar index, which track the greenback against a basket of currency peers, had dipped marginally by 0.1% to 99.08. The euro had risen by 0.1% against the dollar to $1.1638, while the British pound had inched down 0.1% to $1.3438.

News outlet Al Jazeera has reported that indirect negotiations between Washington and Tehran have continued, despite an exchange of fire earlier this week. The U.S. stressed that a shaky ceasefire remained in place, although Iran has warned of retaliation should the truce be violated.

U.S. Secretary of State Marco Rubio said this week that it will take a "few days" for Washington and Tehran to reach a deal.

Media reports over the weekend suggested that the U.S. and Iran were close to a framework accord. The terms of the agreement included an extension to the ceasefire and a reopening of the Strait of Hormuz, a vital waterway off Iran’s southern coast through which a fifth of the world’s oil flows. The strait has been largely shuttered since the start of the war in late February, crimping oil supplies and driving crude prices higher.

Worries have abounded that this uptick in oil prices will fuel a burst of inflation in countries around the world. Expectations that central banks -- including the Federal Reserve and European Central Bank -- may raise rates to corral price pressures have subsequently grown.

"On Iran, we’ve seen little definitive news flow this week, leaving a sense that a deal might not yet be as imminent as hoped over the weekend. However it seems talks remain on track despite the targeted U.S. strikes," analysts at Deutsche Bank said in a note.

The U.S. dollar has been viewed as a relative safe haven against this backdrop, with some investors attracted by the belief that the U.S. -- as a major energy exporter -- might be relatively insulated from the oil price spike.

In Asia, the yen had faltered to its weakest against the dollar since late April, approaching levels which, according to media reports, had triggered an intervention by Japanese officials.

Elsewhere, the New Zealand dollar strengthened after the Reserve Bank flagged that interest rates may need to be raised sooner than initially projected.