Investing.com - The dollar pushed higher against the other major currencies on Wednesday after comments by Federal Reserve officials boosted expectations for higher interest rates and investors remained wary after Tuesday’s attacks in Brussels.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.29% at one-week highs of 95.95.
The dollar found support after Philadelphia Fed President Patrick Harker said that there is a strong case to continue to raise interest rates and added that he would like to see three rate hikes before the end of the year.
Separately, Chicago Fed President Charles Evans said he expects two more rate hikes before the years end, if the economy remain on track.
Higher interest rates would make the dollar more attractive to yield seeking investors.
The euro fell to one-week lows, with EUR/USD sliding 0.28% to 1.1185.
The dollar gained ground against the yen, with USD/JPY advancing 0.27% to 112.67.
The dollar initially fell against the yen early Tuesday after explosions hit Brussels’s international airport and a metro station, killing at least 30 people.
Investors also remained subdued ahead of the long Easter holiday weekend.
Elsewhere, the pound continued to fall as the attacks in Brussels were seen as increasing the chances of a British exit from the European Union in a June 23 referendum.
GBP/USD was down 0.3% at 1.4166, the weakest level since March 16.
The Bank of England’s Financial Policy Committee, which is charged with safeguarding financial stability, was to hold its final meeting before the referendum later Wednesday.