The dollar turned lower against other major currencies on Wednesday.
Losses will probably remain limited due to political uncertainty in Europe. These continued to weigh on market sentiment. EUR/USD added 0.10% to 1.0689, off a one-and-a-half week low of 1.0641.
The euro came 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.
Minneapolis Federal Reserve Bank President Neel Kashkari said on Tuesday that the U.S. central bank should keep monetary policy accommodative. The comments came a day after Philly Fed President Patrick Harker said he would support hiking rates.
Elsewhere, GBP/USD was steady at 1.2513.
Also, 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. This was in a symbolic, non-binding vote. USD/JPY declined 0.38% to 111.93, close to the previous session’s more than two-month lows of 111.57. Meanwhile USD/CHF slid 0.28% to 0.9948. Furthermore, the Australian and New Zealand dollars pushed higher. AUD/USD is up 0.25% at 0.7646 and with NZD/USD gaining 0.25% to 0.7317. Furthermore, USD/CAD edged down 0.21% to trade at 1.3158. This was off Tuesday’s two-week high of 1.3215. The U.S. dollar index measures the greenback’s strength. It measures against a trade-weighted basket of six major currencies. It was down 0.19% at 100.20, off session highs of 100.63.