Rate Hike Uncertainty Push Dollar Lower Against Rivals

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By Brendel Balaga

The dollar edged lower against competing major currencies on Wednesday, as the greenback continues to be under pressure brought about by the uncertainty surrounding the timing of future U.S. rate hikes.

USD/JPY declined 0.27% to trade at 107.07.

The greenback remained under pressure after Federal Reserve Chair Janet Yellen indicated in her speech on Monday that the U.S. central bank will not be hiking interest rates anytime soon.

While the Fed chief said expressed confidence in the U.S. economy’s recovery, she avoided addressing the question on everyone’s minds, which is timing of a next rate increase.

EUR/USD tacked on 0.11% to trade at 1.13708, within range of Monday’s three-week peak of 1.1392.

The dollar held steady against the pound, with GBP/USD trading at at 1.4539, but was weaker against the Swiss franc, with USD/CHF giving up 0.23% to trade lower at 0.9632.

The pound gained after upbeat industrial and manufacturing figures were released, but gains were limited as uncertainty Britain’s membership in the European Union kept investors cautious.

The Australian dollar was lower, with AUD/USD falling 0.20% at 0.7443, giving up yesterday’s one-month highs of 0.7463, while NZD/USD inched higher, adding 0.17% to trade at 0.6989.

Elsewhere, USD/CAD tumbled, falling 0.18% to trade at 1.2714, a low last seen on May 4.

The commodity-related loonie remained supported as oil prices extended gains for a third straight session on Wednesday.

The U.S. dollar index inched lower, shedding 0.13% to 93.72, the lowest in nearly a month.

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