Forexpros - The U.S. dollar was mixed against its major counterparts on Wednesday, as investors eyed comments from the Federal Reserve with hopes the central bank will announce fresh stimulus measures, while euro zone debt concerns continued to weigh.
During European morning trade, the dollar was lower against the euro, with EUR/USD rising 0.12% to hit 1.2700.
Investors awaited the conclusion of the Fed’s two-day policy meeting later Wednesday, amid growing expectations that policymakers may announce a third round of monetary stimulus after a recent string of weak economic data.
Meanwhile, the euro found support amid reports that Greek party leaders may be close to forming a coalition government, which would allow Athens to resume negotiations with creditors on its international bailout deal.
In Spain, the yield on 10-year bonds eased back to just below the critical 7% threshold, after climbing to euro-era highs earlier in the week, amid fears that Madrid will be forced to seek a full-fledged international bailout.
Also Wednesday, official data showed that German producer price inflation fell more-than-expected in May, ticking down 0.3% after a 0.2% rise the previous month. Analysts had expected producer price inflation to fall 0.1% in May.
The greenback was steady against the pound, with GBP/USD edging up 0.05% to hit 1.5733.
The Bank of England’s June meeting minutes showed that four policymakers voted in favor of approving another round of quantitative easing this month, including central bank governor Mervyn King, while five voted against.
Meanwhile, official data showed that the number of people claiming unemployment benefits in the U.K. rose to 8,100 in May, defying expectations for a decline of 3,000.
The U.K. unemployment rate held steady at 8.2%, in line with expectations.
Elsewhere, the greenback was steady against the yen and lower against the Swiss franc, with USD/JPY easing 0.02% to hit 78.94 and USD/CHF falling 0.14% to hit 0.9453.
In Japan, government data showed earlier that the trade deficit widened unexpectedly in May, falling to JPY0.66 trillion from a deficit of JPY0.51 trillion the previous month.
In addition, the greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD inching down 0.05% to hit 1.0173, AUD/USD adding 0.12% to hit 1.0201 and NZD/USD declining 0.12% to hit 0.7972.
Official data showed that New Zealand’s trade deficit narrowed less-than-expected to NZD1.31 billion in the first quarter from a deficit of NZD2.83 billion the previous quarter.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.14%, to trade at 81.51.
Later in the day, the Federal Reserve was to announce its benchmark interest rate and publish its rate statement. The announcement was to be followed by a press conference with Fed Chairman Ben Bernanke to discuss the monetary policy decision.
