On Wednesday, the greenback remained higher against the other major rivals, led by the Federal Reserve’s March policy meeting as investors were keeping their eyes on its later due within the day.
Meanwhile, USD/JPY remained flat at 110.38, slightly away from the 17-month low of 109.94 on Tuesday.
Investors were closely watching the minutes of the March meeting of the Fed due on Wednesday, in order to get further signals on the future path on rate hike.
Speculations arise on how higher the currency can boost before Japan’s regulators act to weaken the strengthening yen.
On Tuesday, Haruhiko Kuroda, Bank of Japan Governor, he would respond immediately in order to fuel stimulus measures if necessary.
Meanwhile, EUR/USD fell 0.34%, hitting at 1.13.
The German industrial output in the euro zone declined by about 0.5% in February, beating the analysts’ estimate of 1.8%.
Conversely, the greenback was higher against the pound and the Swiss franc, with GBP/USD down by 0.93%, hitting 1.40. Meanwhile, the USD/CHF rallied 0.38% to 0.95.
The Australian remained steady, with AUD/USD at 0.75, while NZD/USD lost 0.29% to 0.67.
USD/CAD surged 0.12% to 1.31.
The U.S. dollar index, which calculates the strength of the dollar compared to other major currencies, rallied by about 0.35% at 94.95, off by five-and-a-half month low of 94.30 last week.
Investors Awaits Further Signals
U.S. stocks could still be fueled, while the dollar might be drawn out of their current ranges, analysts said.
Christopher Vecchio, an analyst, said, “unfortunately, it seems unlikely that the [Fed] minutes will prove helpful to both parties here; what’s good for the greenback is bad for stocks, and vice versa,”
The ICE U.S. Dollar index, which calculates the strength of a dollar against other major currencies, rallied by nearly 0.1% at 94.68.
Ahead of the remarks of Yellen from March’s post conference, analysts described her comments as unequivocally dovish. Concerns over the domestic impact of slowing growth abroad were highlighted, including the asymmetric risk of an early rate hike. She highly reissued her overview in an Economic Club of New York speech last week.
The “dot plot” of the Fed’s rate-hike projections announced in March suggests that there will only be two hike for the current year – down from a projection on median with a four hikes from the version unveiled after the December meeting of Fed.
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