The dollar held on to its recent gains on Wednesday, trading near its highest levels in several weeks against a number of major currencies ahead of a Federal Reserve decision that traders expect to mark the first rate hike in a potential series of increases in borrowing costs.
The odds of a 25-basis-point rate hike stood at about 90%, meaning the dollar would see a slight rise if the Federal Reserve decides to raise interest rates.
Yen and New Zealand dollar post biggest losses
The dollar rose alongside bond yields overnight, recording its biggest gains against the yen and the New Zealand dollar. The moves pushed the New Zealand currency to a two-month low of $0.5749 in morning Asian trading, while the Japanese currency fell to a one-week low of 155.43 per dollar.
The euro stood at $1.1535, near its one-month low of $1.1523 recorded on Monday. Sterling stood at $1.3470, remaining close to its six-week low of $1.3464, also recorded on Monday.
Australian dollar steady, volatility limited
The Australian dollar was steady at $0.7126, while currency markets saw no major volatility as global bond yields rose in tandem over the past few weeks.
