Investing.com – The U.S. dollar was broadly lower against its major counterparts on Wednesday, as risk appetite sharpened while the euro surged to a 14-month high as investors positioned themselves ahead of an expected euro zone interest rate hike.
During European morning trade, the greenback was lower against the euro, with EUR/USD rising 0.51% to hit 1.4295.
The European Central Bank was widely expected to raise interest rates on Thursday for the first time since October 2008.
But the greenback was fractionally higher against the pound, with GBP/USD dipping 0.03% to hit 1.6289.
Earlier in the day, official data showed that manufacturing production in the U.K. was flat in February, while industrial production declined unexpectedly.
Elsewhere, the greenback was higher against the yen but sharply lower against the Swiss franc with USD/JPY rising 0.25% to hit 85.07 and USD/CHF tumbling 0.85% to hit 0.9173.
Earlier Wednesday, government data showed that consumer price inflation in Switzerland rose more-than-expected in March.
In addition, the greenback was lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD shedding 0.30% to hit 0.9607, AUD/USD climbing 0.58% to hit 1.0386 and NZD/USD soaring 0.84% to hit 0.7748.
Earlier in the day, official data showed that Australian home-loan approvals declined for a second month in February as floods and a cyclone disrupted the housing market on the nation’s east coast.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.36%.
On Tuesday, the minutes of the Federal Reserve’s March policy meeting indicated that policymakers believed the U.S. economic recovery was gaining momentum but highlighted the potential negative impact of rapidly rising commodity prices on inflation expectations, consumer spending and business investment.
During European morning trade, the greenback was lower against the euro, with EUR/USD rising 0.51% to hit 1.4295.
The European Central Bank was widely expected to raise interest rates on Thursday for the first time since October 2008.
But the greenback was fractionally higher against the pound, with GBP/USD dipping 0.03% to hit 1.6289.
Earlier in the day, official data showed that manufacturing production in the U.K. was flat in February, while industrial production declined unexpectedly.
Elsewhere, the greenback was higher against the yen but sharply lower against the Swiss franc with USD/JPY rising 0.25% to hit 85.07 and USD/CHF tumbling 0.85% to hit 0.9173.
Earlier Wednesday, government data showed that consumer price inflation in Switzerland rose more-than-expected in March.
In addition, the greenback was lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD shedding 0.30% to hit 0.9607, AUD/USD climbing 0.58% to hit 1.0386 and NZD/USD soaring 0.84% to hit 0.7748.
Earlier in the day, official data showed that Australian home-loan approvals declined for a second month in February as floods and a cyclone disrupted the housing market on the nation’s east coast.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.36%.
On Tuesday, the minutes of the Federal Reserve’s March policy meeting indicated that policymakers believed the U.S. economic recovery was gaining momentum but highlighted the potential negative impact of rapidly rising commodity prices on inflation expectations, consumer spending and business investment.