Investing.com - The dollar pushed lower against the other major currencies in quiet trade on Wednesday, as recovering oil prices lent strength to commodity-linked currencies, although expectations for a U.S. rate hike this month continued to support the greenback.
USD/JPY declined 0.62% to 122.16.
The dollar remained broadly supported after Friday's strong U.S. employment data fuelled further expectations that the Federal Reserve will hike interest rates for the first time since 2006 at its upcoming meeting on December 15-16.
EUR/USD gained 0.59% to 1.0957, recovering from Tuesday’s lows of 1.0829.
Trade in the euro remained subdued after last Thursday’s rally when the latest round of European Central Bank easing measures fell short of market expectations.
Elsewhere, the dollar was lower against the pound and the Swiss franc, with GBP/USD up 1.04% at 1.5166 and with USD/CHF sliding 0.32% to 0.9892.
The Australian dollar turned higher, with AUD/USD up 0.26% to 0.7234, while NZD/USD held steady at 0.6648.
Later Wednesday, the Reserve Bank of New Zealand was expected to lower its benchmark interest rate by 0.25% from 2.75% to 2.50%.
Market participants were eyeing the central bank's press conference, due shortly after the interest rate decision, for indications on the RBNZ's future policy moves.
Meanwhile, USD/CAD retreated 0.43% to trade at 1.3258, off the previous session's 11-1/2 year highs of 1.3621.
The commodity related currencies regained strength as a selloff in commodities eased after the U.S. Energy Information Administration said in its weekly report that crude oil inventories declined by 3.6 million barrels in the week ended December 4.
Market analysts' expected a crude-stock rise of 252,000 barrels
Oil prices fell to the lowest level since early 2009 on Tuesday, before recovering slightly.
The renewed selloff came after the Organization of the Petroleum Exporting Countries failed on Friday to agree on an oil production ceiling, adding to fears over a global supply glut.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.65% at 97.78.