U.S. Dollar Strengthens On Fed Rate-hike Uncertainty

(RTTNews) - The U.S. dollar firmed against its major counterparts in the European session on Wednesday, as hawkish comments from Federal Reserve officials renewed concerns about the tightening path and a slowdown in the economic growth.

Atlanta Fed President Raphael Bostic said that he supported another 25 basis point rate hike next month and then pausing for some time to curb high inflation.

"There is still more work to be done, and I am ready to do it," Bostic said during an interview on CNBC on Tuesday.

St. Louis Fed chief James Bullard expressed support for more rate hikes and take the fed funds rate to a range of 5.5 percent to 5.75 percent.

Bullard stressed that the central bank should keep rates at a restrictive level for longer to ensure that inflation is under control.

The greenback climbed to a multi-week high of 135.13 against the yen and a 1-week high of 0.9000 against the franc, from its early lows of 133.95 and 0.8955, respectively. The currency is seen facing resistance around 139.00 against the yen and 0.92 against the franc.

The greenback advanced to 0.6690 against the aussie and 0.6172 against the kiwi, setting 2-day highs. Next immediate resistance for the currency is seen around 0.64 against the aussie and 0.59 against the kiwi.

The greenback was up against the loonie, at a 6-day high of 1.3441. On the upside, 1.36 is possibly seen as its next resistance level.

The greenback edged up to 1.0926 against the euro and 1.2398 against the pound, reversing from an early low of 1.0984 and a 5-day low of 1.2472, respectively. The greenback may find resistance around 1.05 against the euro and 1.21 against the pound.

Looking ahead, Canada housing starts and PPI for March and the U.S. Fed Beige book report are slated for release in the New York session.