• The dollar stood near a three-week high against a basket of currencies on Wednesday, after upbeat views from Federal Reserve Chairman Jerome Powell on the economy encouraged bets on further Fed interest rate hikes this year.
The dollar index, which measures the greenback against a basket of six major currencies, last traded at 90.395, after hitting a high of 90.498 on Tuesday, its strongest level in almost three weeks.
The Fed is expected to approve its first rate increase of 2018 at its next policy meeting in March, when it will also provide updated economic projections and Powell will hold his first news conference as chair.
The dollar fell 0.2 percent to 107.10 yen.
• The yen edged higher after the Bank of Japan on Wednesday trimmed the amount of super-long Japanese government bonds (JGBs) it offered to buy at its regular debt buying operation.
• BOJ officials have said that any changes to bond-buying operations are fine-tuning and not meant as hints to future policy.
• Analysts said the dollar could face headwinds against the yen over the next few weeks due to the potential for dollar-selling by Japanese players ahead of Japan’s financial year-end in March.
BOJ Governor Haruhiko Kuroda said in parliament on Wednesday that once the central bank starts to normalise monetary policy the process would be “very gradual” and that the BOJ would pay attention to any risks to the economy.
• The euro eased 0.1 percent to $1.2224, after briefly slipping to $1.2215, its lowest since Feb.
• The CME Group's FedWatch tool is now pricing in a near-certain 81.7% chance of a rate hike at the Fed's March meeting and a71.1% chance of a follow-up move in June, up from just 58.5% last week.
• Oil prices fell on Wednesday as weak Chinese and Japanese industrial data triggered concerns of an economic slowdown that could lower oil demand, and as an industry data report showed an increase in U.S. crude stockpiles amid soaring output.
U.S. West Texas Intermediate crude CLc1 was down 32 cents, or 0.5 percent, at $62.69 a barrel by 0755 GMT, after falling 90 cents in the previous session.
Brent crude LCOc1 was down 25 cents, or 0.4 percent, at $66.38 a barrel. On Tuesday, Brent fell 87 cents to $66.63.
Traders said oil prices declined on concerns of a slowdown in the global economy after China reported on Wednesday that factory growth in February was at its lowest since July 2016.
Reference: Reuters, CNBC
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