Investing.com - The dollar edged higher against the other major currencies on Wednesday, ahead of the Federal Reserve’s rate statement later in the day, which it was hoped would provide more clarity on the timing of an initial interest rate hike.
EUR/USD was down 0.23% at 1.1036, holding below Monday’s two-week highs of 1.1128.
Investors were waiting to see if Fed policymakers will give any indication on the timing or pace of future interest rate increases.
Fed Chair Janet Yellen has said the central bank could raise rates as soon as September if the economy continues to improve as expected.
The U.S. was to release figures on second quarter growth on Thursday, which were expected to show that the economy rebounded following a contraction in the first quarter after an unusually harsh winter.
Data on Tuesday showed that U.S. consumer confidence unexpectedly deteriorated this month as a less optimistic outlook for the labor market, as well as uncertainty and volatility in financial markets prompted by the situation in Greece and China sapped investor sentiment.
Other reports on Tuesday showed that U.S. house price growth stalled in May, while activity in the service sector picked up this month.
USD/JPY added 0.12% to 123.71.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, edged up 0.14% to 96.89.
The dollar was steady against the Swiss franc, with USD/CHF at 0.9631 and GBP/USD up 0.14% to 1.5636.
The commodity linked currencies were steady to lower, with AUD/USD down 0.35% to 0.7311, nearing Tuesday’s six year lows of 0.7256, and with NZD/USD little changed at 0.6681. USD/CAD rose 0.23% to 1.2952.
Volatility in Chinese equity markets has roiled the Aussie, because of the country’s strong trade links to China.