The greenback was a tad higher after hitting a 15-month low earlier in the session on a mix of political uncertainty stateside and market expectations of further rate hikes from the Fed.
The dollar index, which measures the dollar against a basket of rival currencies, stood at 93.052 at 9:35 a.m. HK/SIN, off a low of 92.777 touched overnight. Against the yen, the dollar fetched 110.51 yen, off a low of 110.28 yen seen earlier in the overnight session.
While the dollar took a breather after “incessant waves” of dollar selling seen earlier in the week, a skittish overtone remained in the currency markets, OANDA APAC Head of Trading Stephen Innes said in a Wednesday note.
“The U.S. political crater and lack of fiscal stimulus from Washington will continue to be the primary catalyst for dollar declines,” he said.