Investing.com - The dollar moved higher against the other main currencies on Wednesday, shrugging off discouraging consumer confidence data as investors turned their attention to testimony by Federal Reserve Chair Janet Yellen on Thursday.
USD/JPY was up 0.14% to 102.37, recovering from Tuesday’s lows of 101.99.
The dollar fell against the yen on Tuesday following a disappointing reading on U.S. consumer sentiment, which fuelled concerns over the strength of the economic recovery.
Recent weak U.S. economic indicators have raised some doubts over whether the Federal Reserve will maintain the current pace of reductions to its stimulus program.
Janet Yellen was expected to reiterate that the U.S. central bank would continue to roll back its asset purchase program, as long as the economy improves as expected.
The euro drifted lower against the dollar, with EUR/USD sliding 0.20% to 1.3716.
The euro shrugged off a report showing that Germany’s forward looking Gfk consumer sentiment index ticked up to a seven-year high of 8.5 for March from 8.3 in February.
Elsewhere, GBP/USD dipped 0.07% to 1.6670, after data confirmed that the rate of fourth quarter economic growth in the U.K. was unrevised at 0.7%, but the annual rate of growth was revised slightly lower.
Separately, two members of the Bank of England’s monetary policy committee reiterated Wednesday that the bank is planning to keep rates on hold for some time.
David Miles said recent falls in inflation meant there was less pressure to raise borrowing costs, while the bank’s chief economist Spenser Dale said it was not planning to raise rates any time soon.
The dollar rose to session highs against the Swiss franc, with USD/CHF up 0.27% to 0.8891.
The Australian dollar was lower, with AUD/USD down 0.50% to 0.8974, while NZD/USD lost 0.23% to trade at 0.8310.
Sentiment on the Australian dollar was hit by concerns over the growth outlook for China. China’s yuan fell sharply on Tuesday, adding to losses in recent weeks, amid speculation that the country’s central bank has intervened to add volatility to the currency ahead of possible economic reforms.
The U.S. dollar pushed higher against the Canadian dollar, with USD/CAD rising 0.17% to 1.1102.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.17% to 80.31.