Investing.com - The dollar bounced off six-week lows against other major currencies on Wednesday, but remained under pressure as signals pointing to a slower pace of rate hikes in the U.S. continued to weigh.
EUR/USD slipped 0.19% to 1.0790, off the previous session’s six-week high of 1.0822.
The greenback weakened after Chicago Federal Reserve President Charles Evans said on Monday that the Fed is on track to raise rates twice more this year, underlining the view that the central bank will stick to a gradual pace of tightening after last week’s rate hike.
The dollar was also vulnerable after G20 financial leaders dropped a pledge to keep global trade free and open during talks this weekend, following opposition from the increasingly protectionist Trump administration.
The move renewed uncertainty over U.S. trade relations and by extension the Trump administration’s concerns over the strong dollar.
The single currency had strengthened after centrist Emmanuel Macron appeared to come out on top in a televised debate against his main rival, far-right anti-EU leader Marine Le Pen.
However concerns resurfaced when the Financial Times reported that center-right candidate Francois Fillon is now facing claims he allegedly sought to profit financially from ties to Russian President Vladimir Putin.
Elsewhere, GBP/USD edged down 0.10% to 1.2466, after hitting a three-and-a-hald week high of 1.2506 overnight.
USD/JPY declined 0.37% to trade at 111.31, the lowest since November 23, while USD/CHF held steady at 0.9936.
The Australian and New Zealand dollars were weaker, with AUD/USD down 0.43% at 0.7658 and with NZD/USD shedding 0.20% to 0.7026.
Meanwhile, USD/CAD gained 0.32% to trade at a one-week high of 1.3395.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.11% at 99.66, just off a six-week trough of 99.45 hit overnight.