New York, US (BBN) – The US dollar gained in Asia on Wednesday with all eyes on the Federal Reserve policy announcement later in the day.
The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.36 per cent to 101.62, reports
USD/JPY changed hands at 114.66, down 0.08 per cent, while AUD/USD traded at 0.7563, up 0.04 per cent.
GBP/USD traded at 1.2154, up 0.02 per cent.
Overnight, the dollar traded higher against a basket of major currencies on Tuesday, as the Federal Reserve began its two-day policy meeting while sterling lost its footing, after the UK government got the green light to start talks to leave the European Union.
According to the’s Fed rate monitor tool, 95 per cent of traders expect a rate hike on Wednesday.
Meanwhile, upbeat US economic data underpinned upside momentum in the greenback, after US producer prices increased more than expected in February.
The Labor Department said on Tuesday that its producer price index for final demand increased 0.3 per cent last month after rising 0.6 per cent in January.
Economists had forecast a 0.1 per cent rise.
Elsewhere, the pound was one the biggest losers against the greenback, after the UK Parliament passed the Brexit bill, paving the way for the government to trigger Article 50, which formally starts the Brexit process.
Investors opted for caution ahead of the Dutch parliamentary elections on Wednesday.
Although the risk of a Eurosceptic party emerging as victorious is slim, the Dutch election represents a high volatile scenario as it comes ahead of the French elections.