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On Wednesday, the dollar maintained stability as traders adopted a cautious approach ahead of key events such as Federal Reserve Chairman Jerome Powell’s testimony, the European Central Bank’s interest rate decision, and US jobs data later in the week.
Bitcoin showed renewed strength but remained below its recent record high after experiencing volatility in the previous session.
Lack of significant catalysts kept the dollar range-bound, following a slight decline on Tuesday following reports of a slowdown in US services sector growth.
Investors are closely eyeing the US February jobs report expected on Friday, which could impact interest rate expectations and market sentiment depending on the outcome.
Federal Reserve Chairman Powell’s testimony is also anticipated, with expectations that it will reinforce the central bank’s stance of awaiting further economic data before considering interest rate adjustments.
The dollar index, which gauges the dollar’s performance against six major currencies, hovered near the 103.76 level.
Meanwhile, the euro stabilized around $1.0855 ahead of the European Central Bank’s interest rate decision, widely expected to maintain rates at a record low of four percent.
The British pound remained steady at $1.27050 ahead of the UK budget announcement.
In Asia, the Australian dollar rebounded despite disappointing fourth-quarter GDP data, signaling resilience to low interest rates. It climbed 0.24 percent to $0.65195.
Similarly, the New Zealand dollar saw a slight uptick to $0.60960 after touching a three-week low earlier.
Against the yen, the dollar edged down to 149.86 from overnight levels of 149.70.
Market attention also remains on Bitcoin, which rose 4.11 percent to $65,921 in the latest trading session. The cryptocurrency has witnessed strong growth since October, fueled by investor interest in US exchange-traded funds amid prospects of global interest rate cuts.
