The dollar regained its strength and rose slightly on Wednesday after a group of Federal Reserve officials left the door open for potential interest rate hikes in the future. Traders are awaiting the speech of Jerome Powell, the Chairman of the Federal Reserve, to understand the future course of the bank's monetary policy. The dollar fell last week following the Fed's decision to maintain interest rates and in light of data indicating a slowdown in the US labor market. However, it has risen amid market debates on whether interest rates have peaked and when the Federal Reserve might begin easing monetary policy.
The British pound declined by 0.19 percent to $1.22755, after reaching its highest level in seven weeks against the US dollar earlier this week, surpassing $1.24. The yen has also retreated again to 150 against the dollar after a brief respite last week, trading at 150.66 in the latest transactions.
The dollar index increased by 0.11 percent to 105.66 points and is on track for weekly gains after recording its largest weekly drop in about four months last week. The euro fell by 0.13 percent to $1.0685, influenced by gloomy growth forecasts for the eurozone. Data released on Tuesday showed that industrial production in Germany fell more than expected in September.
The Australian dollar recorded $0.6428 after declining by 0.8 percent in the previous session, marking its largest daily drop in nearly a month. The New Zealand dollar decreased by 0.08 percent to $0.5930.
