The US Dollar strengthened against several major currencies on Wednesday amid growing expectations of a Federal Reserve interest rate hike and rising global bond yields. According to FX Street, the Canadian Dollar declined for the second consecutive day against the US Dollar, pressured by these factors.
FX Street also reported that the USD/CHF pair traded around 0.8130 during Asian hours, marking gains for a second straight session. Meanwhile, the Euro weakened to near 1.1575 during the early European session, influenced by the Fed's hawkish stance and ongoing geopolitical tensions.
Gold prices remained under pressure, recovering slightly from a nearly four-week low during the Asian session but still down over 0.50% for the day, trading just above $4,300, FX Street noted. Japanese investors remain cautious as the stronger US Dollar and higher yields could impact regional markets and export-driven equities.