The U.S. dollar lost ground versus major rivals Wednesday, ahead of the release of the Federal Reserve’s January meeting minutes, which could harbor more dovish surprises for the market.
All the while, market participants are watching developments in the U.S.-China trade relationship.
The ICE U.S. Dollar Index
DXY, -0.15%
was last down 0.2% at 96.314.
Later in the day, the Federal Reserve will publish the minutes of its January meeting which left markets surprised at the dovish turn the central bank had taken. Some market participants see scope for further dovish risks in the release. The minutes are due at 2 p.m. Eastern.
Read: What’s next for the dollar in this ‘patient’ Powell world?
On the trade front, President Donald Trump has expressed some flexibility on the March 1 deadline he set to get a trade deal, but the U.S. is pressing for a stable Chinese yuan to be part of any agreement, according to a Bloomberg report.
Don’t miss: What a U.S. demand for China to stabilize its currency really means
The yuan was stronger against the dollar, climbing to its best level in about three weeks, with one buck buying 6.7207 yuan
USDCNY, -0.5593%
in Beijing and 6.7095 yuan
USDCNH, -0.5248%
in the offshore market, down 0.6% and 0.5% respectively.
The British pound
GBPUSD, +0.0995%
climbed back into the green after starting the session weaker. U.K. Prime Minister Theresa May is set to meeting with European Commission President Jean-Claude Juncker on Wednesday where she is seeking legally binding concessions over the treatment of the Northern Ireland-Ireland border. The British Parliament is set to vote on May’s amended deal on Wednesday next week, Feb. 27. meanwhile, U.K. political parties are dealing with resignations of lawmakers opting to become independents.
Brexit Brief: U.K Prime Minister May fights fires at home and abroad
Sterling last fetched $1.3079, up from $1.3063 late Tuesday in New York.
The euro
EURUSD, +0.1587%
also sensitive to Brexit risk, was climbed to $1.1369, versus $1.1344 late Tuesday.
Elsewhere, the Japanese yen
USDJPY, +0.06%
came back from some slight weakness and was little changed against the greenback, with one dollar buying ¥110.67.
Bank of Japan Gov. Haruhiko Kuroda said earlier, during Asian market hours, that the central bank wasn’t targeting exchange rates, walking back a statement that a stronger yen could force the bank to boost its stimulus.
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Source : MTV
