Investing.com - The dollar edged up to fresh seven-month highs against the other major currencies on Wednesday, as investors awaited the minutes of the Federal Reserve’s latest meeting amid growing hopes for a 2016 U.S. rate hike.
EUR/USD slid 0.30% to 1.1021, the lowest since July 27.
Market participants were waiting for the minutes of the Fed’s September policy meeting for hints on the central bank’s future policy moves.
Demand for the U.S. dollar still remained supported, as the odds for a December rate hike passed the 70% threshold on Tuesday.
GBP/USD rallied 1.04% to 1.2250 after British Prime Minister Theresa May was forced to give way to MPs over how much influence Parliament has over her Brexit plan.
The British Prime Minister was effectively pushed into allowing Tory MPs on Tuesday to vote for a Labour motion calling for greater scrutiny of her Brexit proposals.
The motion, which demands that MPs scrutinise May’s negotiating position before she starts withdrawal talks with other EU states, is not binding on the government but underlines the weakness of the Prime Minister’s position in Parliament.
The pound had been under broad selling pressure since last week amid growing concerns over a ‘hard Brexit’ for Britain.
Citing leaked government papers, the Times reported on Tuesday that the U.K. could lose up to £66 billion a year under a "hard Brexit".
Elsewhere, USD/JPY gained 0.37% to 103.89, while USD/CHF added 0.08% to 0.9897.
Earlier Wednesday, Bank of Japan Governor Haruhiko Kuroda reiterated to Japan's parliament on Wednesday that he remains ready to cut interest rates or expand asset buying if needed.
The Australian dollar was stronger, with AUD/USD up 0.41% at 0.7570, while NZD/USD held steady at 0.7053.
Meanwhile, USD/CAD eased 0.09% to trade at 1.3252.
The commodity currencies were supported by rising oil prices on Wednesday, as investors eyed a fresh round of talks between OPEC producers and other oil exporters to stabilize the global oil market.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.09% at a fresh seven-month peak of 97.81.