Investing.com - The dollar edged higher against other major currencies on Wednesday, as investors awaited the release of data on U.S. nonfarm employment amid sustained expectations for a rate hike by the Federal Reserve next week.
EUR/USD slipped 0.10% to 1.0556, the lowest since March 3.
Expectations for a March rate hike were boosted after Fed Chair Janet Yellen said last week that a rate hike "would likely be appropriate" this month if employment and inflation continued to evolve in line with expectations.
Market participants were looking ahead to the ADP jobs report due later in the day, as well as the highly anticipated US nonfarm payrolls report expected on Friday for further indications on the strength of the job market.
The euro showed little reaction to data showing that German industrial production rose by a larger-than-forecast 2.8% in January.
Elsewhere, GBP/USD fell 0.28% to a seven-week low of 1.2166, as investors were also awaiting the U.K. Treasury’s Annual Budget Release, due later Wednesday.
USD/JPY was little changed at 114.06, while USD/CHF held steady at 1.0131.
The Australian and New Zealand dollars were weaker, with AUD/USD down 0.32% at 0.7565 and with NZD/USD slipping 0.16% to 0.6945.
Meanwhile, USD/CAD added 0.15% to trade at 1.3433, just off a two-month peak of 1.3445 hit overnight.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was edged up 0.11% to 101.92, the highest since March 3.