Investing.com – The dollar was trading at two-week highs against a currency basket on Wednesday as markets awaited fresh signals from the Federal Reserve on interest rates and developments in the U.S.-China trade war remained in focus.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, edged up 0.1% to 97.35 by 04:25 AM GMT (09:25 AM GMT), the most since Nov. 13.
Investors were looking ahead to a speech by Fed Chairman Jerome Powell later in the day and the minutes of the U.S. central bank’s November meeting, due to be released on Thursday. Markets are hoping for fresh indications on the future path of interest rate increases.
The Fed is widely expected to raise rates for a fourth time this year at its upcoming meeting in December and has indicated that it may raise rates three more time in 2019.
But dovish sounding comments by some policymakers in recent weeks have raised the prospect that the Fed may slow the pace of future rate hikes amid concerns over the outlook for the global economy and ongoing global trade tensions.
On Tuesday, U.S. President Donald Trump once again criticized Powell, whom he picked last year to lead the bank, and the Fed’s rate hikes, which he said were harming the economy.
Also Tuesday, Fed Vice Chair Richard Clarida backed further rate hikes, but said the tightening path would be data dependent.