Investing.com - The dollar remained broadly lower against other major currencies on Wednesday, as investors were eyeing the Federal Reserve’s highly-anticipated policy decision, expected later in the day.
EUR/USD rose 0.20% to 1.0625.
Later Wednesday, the Fed was widely expected to raise interest rates by a quarter point at the conclusion of its policy meeting later Wednesday, which would put it in a range between 0.75%-1%.
Market participants were especially waiting for indications on the pace of future rate hikes this year.
Fed officials previously projected three rate hikes in 2017, but that might move up to four, amid signs of a recent uptick in inflation and continued strength in the jobs market.
Investors were also focusing on Wednesday's Dutch election, which is considered as a bellwether for the spread of populism in Europe.
Opinion polls have suggested that Dutch nationalist Geert Wilders' right-wing Freedom Party, which wants to take the Netherlands out of the European Union and stop Muslim immigration, has lost its lead to more mainstream opponents.
Elsewhere, GBP/USD was up 0.40% at 1.2199, off earlier one-and-a-half week highs of 1.2256.
The U.K. Office for National Statistics reported on Wednesday that unemployment rate dropped to a fresh 11-year low of 4.7% in the three months to January, compared to expectations for an unchanged reading of 4.8%.
The report also showed that the claimant count decreased by 11,300 in February, compared to expectations for a 5,000 decline.
Meanwhile, the average earnings index rose 2.2% in the three months to January. Excluding bonuses, wages rose by 2.3%, missing forecasts for a 2.5% gain.
Separately, the U.K. Parliament gave its approval to Prime Minister Theresa May’s Brexit bill on Monday, giving her the power to formally trigger article 50 of the Lisbon Treaty to launch divorce proceedings with the European Union.
USD/JPY slipped 0.10% to trade at 114.64, while USD/CHF edged down 0.14% to 1.0088.
The Australian and New Zealand dollars were stronger, with AUD/USD up 0.30% at 0.7583 and with NZD/USD rising 0.32% to 0.6941.
Meanwhile, USD/CAD fell 0.16% to trade at 1.3459.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.18% at 101.44.