Investing.com - The dollar gained in Asia on Wednesday with all eyes on the Federal Reserve policy announcement later in the day.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.36% to 101.62. USD/JPY changed hands at 114.66, down 0.08%, while AUD/USD traded at 0.7563, up 0.04%. GBP/USD traded at 1.2154, up 0.02%.
Overnight, the dollar traded higher against a basket of major currencies on Tuesday, as the Federal Reserve began its two-day policy meeting while sterling lost its footing, after the UK government got the green light to start talks to leave the European Union.
According to the Investing.com’s Fed rate monitor tool, 95% of traders expect a rate hike on Wednesday.
Meanwhile, upbeat US economic data underpinned upside momentum in the greenback, after U.S. producer prices increased more than expected in February.
The Labor Department said on Tuesday that its producer price index for final demand increased 0.3 percent last month after rising 0.6 percent in January. Economists had forecast a 0.1 percent rise.
Elsewhere, the pound was one the biggest losers against the greenback, after the UK Parliament passed the Brexit bill, paving the way for the government to trigger Article 50, which formally starts the Brexit process.
Investors opted for caution ahead of the Dutch parliamentary elections on Wednesday. Although the risk of a Eurosceptic party emerging as victorious is slim, the Dutch election represents a high volatile scenario as it comes ahead of the French elections.