Forex – Dollar Hovers at 1-Week Highs with Eyes on Fed Minutes

© Reuters. Dollar remains supported ahead of Fed meeting minutes – The U.S. dollar was hovering at a one-week high against other major currencies on Wednesday, as investors were eyeing the release of the minutes of the Federal Reserve’s latest policy meeting.

The greenback remained supported against other major currencies despite sustained U.S. deficit worries. The U.S. deficit is projected projected to climb near $1 trillion in 2019 following the recent announcement of infrastructure spending and large corporate tax cuts.

The dollar has been pressured lower recently by expectations for a faster pace of monetary tightening outside the U.S., which would lessen the divergence between the Fed and other central banks.

Market participants were looking ahead to the of the Fed’s latest policy meeting, due on Wednesday, for potential indications on the pace of future rate hikes.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.10% at 89.74 by 05:15 a.m. ET (09:15 GMT), its highest since February 14.

The euro was steady, with at 1.2328, while fell 0.34% to 1.3948.

Data earlier showed that , but remained solid in February.

In the UK, official data showed that the unemployment rate in December, while the average earnings index increased in line with expectations.

Elsewhere, the yen was weaker, with up 0.19% at 107.52, while held steady at 0.9370.

The Australian dollar was lower, with sliding 0.38% to 0.7853, while was little changed at 0.7343.

Meanwhile, edged up 0.11% to 1.2662.

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