By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) -- The dollar index edged lower in Asian trading hours on Wednesday but with investors on edge amid Europe’s ongoing debt troubles and a U.S. interest-rate meeting on tap for later in the global trading day, losses were limited.
The dollar index DXY -0.35% , which measures the greenback against a basket of six currencies, traded at 77.215, compared to 77.298 in late North American trading on Tuesday.
The Federal Reserve wraps up its latest interest-rate meeting later Wednesday and Sue Trinh, currency strategist at RBC Capital Markets noted “the backdrop is a far cry from just a few days ago which may strengthen calls from the doves for further quantitative easing.”
The euro fell to its lowest level against the dollar in almost a month on Tuesday after Greece’s prime minister spooked markets on Monday by announcing a confidence vote as well as a referendum on Europe’s latest rescue plan.
The euro EURUSD +0.38% traded at $1.3717 on Wednesday, just up from the $1.3712 level reached by the common currency in late North American trading Tuesday.
“Headline risk remains acute as German Chancellor Merkel and French President Sarkozy speak with the Greek government, the International Monetary Fund and their European partners ahead of a Group of 20 summit,” said Trinh at RBC.
Greece’s prime minister will travel to Cannes for the Group of 20 meeting, Trinh noted “where he will no doubt be forced to explain himself.”
Sterling GBPUSD +0.26% reached $1.5982, from $1.5963 in late trading Tuesday, while the dollar USDJPY -0.32% bought 78.12 yen, down from ¥78.34 Tuesday.
Sarah Turner is MarketWatch's bureau chief in Sydney.
