U.S. Dollar Advances As White House Dismisses Possibility Of Currency Accord

(RTTNews) - The U.S. dollar was higher against its major counterparts in the Asian session on Wednesday, as the White House Economic Adviser Brian Deese remarked that a global accord to adjust the value of the U.S. currency is unlikely to happen for the time being.

Deese said that the strength of the dollar is due to the strength of the economy and a highly uncertain economic outlook.

The yield on the 10-year U.S. treasury note touched 3.982 percent, the highest level since 2010.

The U.S. dollar index that tracks the greenback against a basket of other currencies reached a fresh two-decade peak of 114.71.

Hawkish comments from Federal Reserve officials further underpinned the currency.

On Tuesday, Chicago Fed President Charles Evans reiterated the need for aggressive rate hikes and said that the policy rate is expected to rise to 4.25-4.5 percent by the end of this year.

The greenback rose to 2-day highs of 0.9966 against the franc and 1.0631 against the pound, from its early lows of 0.9901 and 1.0741, respectively. The next possible resistance for the greenback is seen around 1.02 against the franc and 1.05 against the pound.

The greenback touched 2-1/2-year highs of 0.5565 against the kiwi and 0.6363 against the aussie, after dropping to 0.5639 and 0.6445, respectively in early deals. The greenback is seen finding resistance around 0.53 against the kiwi and 0.60 against the aussie.

The greenback firmed to a 20-year high of 0.9536 against the euro and a 2-day high of 1.3801 against the loonie, off its early lows of 0.9601 and 1.3715, respectively. The greenback is likely to find resistance around 0.60 against the euro and 1.40 against the loonie.

The greenback rebounded to 144.85 against the yen, from a low of 144.39 seen at 9:45 pm ET. The currency may challenge resistance around the 146.00 region.

Looking ahead, Swiss economic sentiment index for September is set for release in the European session.

U.S. wholesale inventories, advance goods trade balance and pending home sales, all for August, will be published in the New York session.