Investing.com - The dollar was broadly higher against the other major currencies on Wednesday as markets looked ahead to a speech by Federal Reserve Chair Janet Yellen later in the week.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, edged up 0.2% to 94.7.
Traders were turning their attention to a speech by Fed Chair Janet Yellen at the Jackson Hole central bank symposium, scheduled for Friday, for indications on the future path of U.S. interest rates.
Investors are waiting to see if Yellen will restate the hawkish view of the U.S. economy expressed by Fed officials in recent weeks or echo the minutes of the Fed’s July meeting, which indicated that officials are divided on when to raise rates.
Recent upbeat comments by Fed officials were seen as boosting the prospects for a rate hike this year.
On Sunday Fed Vice Chair Stanley Fischer said inflation is within “hailing distance” of the bank’s 2% target.
The remarks came after speeches last week from San Francisco Fed head John Williams and New York Fed chief William Dudley indicating that the central bank thinks the economy is strong.
The U.S. central bank raised interest rates for the first time in almost a decade in December.
Expectations of higher interest rates typically boost the dollar by making it more attractive to yield seeking investors.
The euro weakened, with EUR/USD down 0.33% at 1.1268.
The dollar was steady against the yen, with USD/JPY at 100.19.
Sterling gained ground, with GBP/USD rising 0.32% to 1.3238.
The commodity linked currencies were mixed, with USD/CAD edging up 0.18% to 1.2934.
AUD/USD inched up 0.17% to 0.7627, while NZD/USD advanced 0.45% to 0.7321.