Investing.com - The dollar was at one-week highs against a basket of the other major currencies on Wednesday as investors awaited the minutes of this month’s Federal Reserve policy meeting.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.19% at 101.64 at 08.17 GMT, the highest level since February 15.
Investors were looking to the Fed minutes for fresh signals on the expected pace of rate hikes this year.
The Fed last raised interest rates in December and has indicated that it could hike rates three times this year.
According to Investing.com's Fed Rate Monitor Tool less than 25% of traders expect the Fed to raise interest rates at its next meeting in March. The chance of a June increase is seen at slightly below 50%.
Demand for the dollar continued to be underpinned after recent comments by Fed officials underlined expectations for higher interest rates.
Philadelphia Fed President Patrick Harker said late on Tuesday he expects the Fed to raise interest rates three times this year.
The comments came after Cleveland Fed President Loretta Mester said Monday she would be “comfortable” raising interest rates as inflation pressures pick up.
The dollar gained ground against the broadly weaker euro, with EUR/USD down 0.33% at 1.0502, the weakest level since January 11.
The single currency remained under pressure amid fears over the possibility of a Brexit or Trump-style shock result in France’s upcoming presidential election.
Sterling was boosted by the weaker euro, with EUR/GBP falling 0.5% to 0.8406, the lowest level since December 21, while GBP/USD rose 0.16% to 1.2488.
The dollar was weaker against the yen, with USD/JPY sliding 0.29% to 113.34, off Tuesday’s highs of 113.77.