Investing.com - The dollar remained near ten-and-a-half month highs against the other major currencies on Wednesday, as Tuesday's upbeat U.S. economic reports continued to support the greenback, while fresh concerns over tensions in Ukraine boosted safe-haven demand.
Demand for the dollar remained supported after data on Tuesday showed that the U.S. service sector expanded at the fastest pace in more than three years in July.
The Institute for Supply Management's services purchasing manager's index rose to 58.7 up from 56.0 in June, beating forecasts and well above the 50 level that signals expansion.
The dollar also strengthened after another report showed that U.S. factory orders rose 1.1% in June, above economists' forecasts of a 0.5% gain.
Meanwhile, risk sentiment waned as a buildup of Russian armed forces along its border with Ukraine fuelled fresh concerns over geopolitical tensions in the region.
The euro was steady, near nine-month lows, with EUR/USD dipping 0.04% to 1.3371.
Official data earlier showed that German factory orders dropped 3.2% in June, disappointing expectations for a 1.0% increase. May's figure was revised to a 1.6% fall from a previously estimated 1.7% drop.
Sentiment on the euro also remained vulnerable ahead of the conclusion of the European Central Bank’s monthly monetary policy review on Thursday, amid concerns over the diverging monetary policy stance between the central bank and its major peers.
Sterling edged lower against the dollar, with GBP/USD slipping 0.15% to 1.6861.
Elsewhere, the dollar was fractionally lower against the yen, with USD/JPY down 0.08% to 102.51 and steady against the Swiss franc, with USD/CHF easing up 0.02% to 0.9092.
In Switzerland, official data showed that consumer price inflation fell 0.4% last month, in line with expectations, and was flat on a year-over-year basis.
The dollar was higher against its New Zealand and Canadian counterparts, with NZD/USD down 0.24% to 0.8448 and with USD/CAD edging up 0.09% to 1.0970.
Official data earlier showed that the number of employed people in New Zealand rose 0.4% in the second quarter, confounding expectations for an increase of 0.7%, while the unemployment rate ticked down to 5.6% from 6.0% in the first quarter, compared to expectations for a decline to 5.8%.
Meanwhile, the dollar slipped lower against its Australian cousin, with AUD/USD adding 0.16% to 0.9318.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.02% at 81.62, not far from highs of 81.70, the most since mid-September.