Investing.com - The U.S. dollar extended gains against most of its global counterparts on Wednesday, as expectations for a third round of quantitative easing by the Federal Reserve continued to wane.
During European afternoon trade, the dollar was trading close to a one-month high against the euro, with EUR/USD sliding 0.14% to hit 1.3064.
Demand for the greenback remained robust as investors trimmed back expectations for a fresh round of monetary easing after the Fed upgraded its outlook for the economy in Tuesday’s rate statement.
The Fed said it now expects to see “moderate economic growth” after its January statement said growth would be “modest” and added that higher oil prices could place upward pressure on inflation.
The euro briefly found support earlier after Eurogroup head Jean-Claude Juncker said euro zone finance ministers had formally approved the release of a second financial aid package for Greece, worth EUR130 billion.
Elsewhere, official data showed that industrial production across the euro zone rose in January for the first time in three months, while the annualized rate of consumer price inflation was unchanged in February and remained above the European Central Bank’s target.
The greenback was ticking up and down between small gains and losses against the pound, with GBP/USD dipping 0.01% to hit 1.5703.
Earlier in the day, official data showed that the number of people claiming unemployment benefits in the U.K. rose more-than-expected in February, while the unemployment rate held steady at 8.4%, the highest level since 1995.
The greenback was at an almost one-year high against the yen, with USD/JPY rallying 0.77% to hit 83.57 and was also up against the Swiss franc, with USD/CHF rising 0.44% to hit 0.9271.
The yen has remained under pressure since last month’s surprise decision by the Bank of Japan to ease monetary policy and set a targeted inflation rate, while the country’s increasing trade deficit has threatened the yen’s traditional safe haven status.
Earlier Wednesday, a report showed that Swiss economic sentiment improved this month, rising significantly for the third consecutive month.
The Centre for European Economic Research (ZEW) said its indicator of economic sentiment improved by 21.2 points to a flat reading of 0.0 from a reading of minus 21.2 in February.
Elsewhere, the greenback was stronger against its Canadian, Australian and New Zealand cousins, with USD/CAD easing up 0.15% to hit 0.9899, AUD/USD dropping 0.77% to hit 1.0470 and NZD/USD tumbling 1.34% to hit 0.8120.
Sentiment on the Australian dollar was hit after data showed that consumer confidence slumped in March, as uncertainty over the global economic outlook weighed and as major banks raised mortgage rates, despite two successive rate cuts by the Reserve Bank of Australia late last year.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.23% to hit 80.82.
Later in the day, Fed Chairman Ben Bernanke was due to speak; his comments would be closely watched.
During European afternoon trade, the dollar was trading close to a one-month high against the euro, with EUR/USD sliding 0.14% to hit 1.3064.
Demand for the greenback remained robust as investors trimmed back expectations for a fresh round of monetary easing after the Fed upgraded its outlook for the economy in Tuesday’s rate statement.
The Fed said it now expects to see “moderate economic growth” after its January statement said growth would be “modest” and added that higher oil prices could place upward pressure on inflation.
The euro briefly found support earlier after Eurogroup head Jean-Claude Juncker said euro zone finance ministers had formally approved the release of a second financial aid package for Greece, worth EUR130 billion.
Elsewhere, official data showed that industrial production across the euro zone rose in January for the first time in three months, while the annualized rate of consumer price inflation was unchanged in February and remained above the European Central Bank’s target.
The greenback was ticking up and down between small gains and losses against the pound, with GBP/USD dipping 0.01% to hit 1.5703.
Earlier in the day, official data showed that the number of people claiming unemployment benefits in the U.K. rose more-than-expected in February, while the unemployment rate held steady at 8.4%, the highest level since 1995.
The greenback was at an almost one-year high against the yen, with USD/JPY rallying 0.77% to hit 83.57 and was also up against the Swiss franc, with USD/CHF rising 0.44% to hit 0.9271.
The yen has remained under pressure since last month’s surprise decision by the Bank of Japan to ease monetary policy and set a targeted inflation rate, while the country’s increasing trade deficit has threatened the yen’s traditional safe haven status.
Earlier Wednesday, a report showed that Swiss economic sentiment improved this month, rising significantly for the third consecutive month.
The Centre for European Economic Research (ZEW) said its indicator of economic sentiment improved by 21.2 points to a flat reading of 0.0 from a reading of minus 21.2 in February.
Elsewhere, the greenback was stronger against its Canadian, Australian and New Zealand cousins, with USD/CAD easing up 0.15% to hit 0.9899, AUD/USD dropping 0.77% to hit 1.0470 and NZD/USD tumbling 1.34% to hit 0.8120.
Sentiment on the Australian dollar was hit after data showed that consumer confidence slumped in March, as uncertainty over the global economic outlook weighed and as major banks raised mortgage rates, despite two successive rate cuts by the Reserve Bank of Australia late last year.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.23% to hit 80.82.
Later in the day, Fed Chairman Ben Bernanke was due to speak; his comments would be closely watched.