The dollar slipped lower against other major currencies on Wednesday, as uncertainty over the Trump administration’s policies resurfaced amid ongoing geopolitical tensions around the world.
EUR/USD eased up 0.10% to 1.0614.
Sentiment on the greenback was fragile amid political uncertainty in the U.S. after President Donald Trump said he wants to tackle health care reform before implementing new tax policy.
Meanwhile, U.S. Secretary of State Rex Tillerson was expected in Moscow on Wednesday where he was set to meet with his Russian counterpart Sergey Lavrov to discuss Ukraine, counterterrorism, bilateral relations and other issues, including the Korean Peninsula and Syria.
Earlier in the week, a U.S. Navy strike group was sent toward the western Pacific – a force U.S. President Donald Trump described as an “armada”.
North Korean state media warned on Tuesday of a nuclear attack on the U.S. at any sign of American aggression.
Elsewhere, GBP/USD added 0.17% to 1.2511 after the U.K. Office for National Statistics said the unemployment rate remained unchanged at an 11-year low of 4.7% in February, in line with expectations.
The claimant count unexpectedly increased by 25,500 in March, compared to expectations for a decline of 3,000.
Meanwhile, the average earnings index rose 2.3% in the three months to February, compared to forecasts for an increase of 2.2%. Excluding bonuses, wages rose by 2.2%, beating forecasts for a 2.1% gain.
USD/JPY was almost unchanged at 109.55, while USD/CHF slipped 0.24% to 1.0053.
The Australian and New Zealand dollars were weaker, with AUD/USD down 0.08% at 0.7493 and with NZD/USD declining 0.46% to 0.6928.
Meanwhile, USD/CAD dropped 0.43% to trade at a two-week low of 1.3269 after the Bank of Canada left the benchmark interest rate unchanged at 0.5%, in a widely expected move.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.14% at 100.49, the lowest since April 7.