The dollar turned lower against other major currencies on Wednesday

Dollar turned lower against major currencies on Wednesday, losses were expected to remain limited as political uncertainty in Europe.

EUR/USD added 0.10% to 1.0689, off a one-and-a-half week low of 1.0641 hit overnight.

Euro under pressure amid concerns over the possibility of a Brexit or Trump-style shock result in France’s presidential election.

Worries over elections in Netherlands, Germany and Italy,  added to concerns over political risk in euro.

Dovish remarks by European Central Bank President Mario Draghi, who on Mondaydownplayed 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 was steady at 1.2513.

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 declined 0.38%, close to the previous session’s more than two-month lows of 111.57, while USD/CHF slid 0.28%.

The Australian and New Zealand dollars pushed higher, AUD/USD up 0.25% and with NZD/USD 0.25%.

Meanwhile, USD/CAD edged down 0.21% to trade at 1.3158, off Tuesday’s two-week high of 1.3215.

 

Dollar trimmed gains against major currencies on Wednesday, but Dollar was expected to remain supported as elections uncertainty continues to dominate market.

 

 

 

 

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