Investing.com - The dollar trimmed gains against other major currencies in quiet trade on Wednesday, but the greenback was expected to remain supported as political uncertainty in Europe continued to dominate market sentiment.
EUR/USD slipped 0.17% to 1.0659, just off a one-and-a-half week low of 1.0641 hit overnight.
The euro remained under pressure amid concerns over the possibility of a Brexit or Trump-style shock result in France’s upcoming presidential election.
Worries over elections in the Netherlands, Germany and possibly Italy, as well as the ongoing row over Greece's bailout added to concerns over political risk in the euro area.
Dovish remarks by European Central Bank President Mario Draghi, who on Monday downplayed calls for the bank to scale back its stimulus program, also weighed.
Meanwhile, sentiment on the greenback remained supported after Minneapolis Federal Reserve Bank President Neel Kashkari said on Tuesday that the U.S. central bank should keep monetary policy moderately accommodative.
The comments came a day after Philly Fed President Patrick Harker said he would support hiking rates in March.
Elsewhere, GBP/USD edged down 0.17% to trade at 1.2486.
Earlier Wednesday, British Prime Minister Theresa May said that an independent Scotland would not be part of the European Union. The comments came a day after Scotland's parliament rejected May's Brexit plans in a symbolic, non-binding vote.
USD/JPY slid 0.32% to 112.01, close to the previous session’s more than two-month lows of 111.57, while USD/CHF held steady at 0.9981.
The Australian and New Zealand dollars were moderately higher, with AUD/USD up 0.09% at 0.7634 and with NZD/USD adding 0.14% to 0.7309.
Meanwhile, USD/CAD fell 0.26% to trade at 1.3152, off Tuesday’s two-week high of 1.3215.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 100.45, off session highs of 100.63.