Investing.com - The dollar remained moderately lower against other major currencies on Wednesday, as markets turned to an upcoming speech by Federal Reserve Chair Janet Yellen and amid speculation over her replacement next year.
The dollar retreated from a recent highs amid speculation the next Fed head could be less hawkish than expected.
Fed Governor Jerome Powell and former governor Kevin Warsh were both interviewed at the White House last week to replace current Fed Chair Janet Yellen next February.
While the two men are seen as serious candidates, Powell is considered as more dovish than Warsh, who has criticised the Fed's bond-buying programme in the past.
The dollar strengthened earlier in the week on speculation that Warsh might be the leading candidate to replace Yellen.
The greenback has also been supported recently by hopes for U.S. tax reform after the Trump administration outlined plans for a sweeping overhaul of the U.S. tax code last week.
EUR/USD edged up 0.10% to 1.1756 but gains were expected to be capped by ongoing political turmoil in Spain.
A general strike took place in Catalonia on Tuesday, adding to tensions with the Spanish government following Sunday's independence vote.
Spain's King Felipe VI accused Catalan secessionist leaders of shattering democratic principles and dividing Catalan society, while the head of Catalonia's government Carles Puigdemont said the region will declare independence in a matter of days.
The pound was als higher, with GBP/USD up 0.26% at 1.3269, easing off the previous session's two-and-a-half week lows of 1.3223 after data showed that the UK's services sector expanded at a faster rate than expected in September.
Elsewhere, the yen was higher, with USD/JPY down 0.28% at 112.53, while USD/CHF held steady at 0.9737.
The Australian and New Zealand dollars were stronger, with AUD/USD up 0.23% at 0.7852 and with NZD/USD adding 0.11% to 0.7168.
Meanwhile, USD/CAD slipped 0.16% to trade at 1.2468.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.15% at 93.28 by 05:20 a.m. ET (09:20 GMT), just off a one-and-a-half month highs of 93.78 hit on Tuesday.