The dollar rose on Tuesday as a top Fed official voiced support for an interest rate increase in September despite a batch of disappointing data.» Read More
The dollar rose against the yen and euro on Wednesday, following the Federal Reserve's announcement it will further unwind monetary stimulus.
A modest easing of tension in Ukraine and a slight increase in U.S. Treasury yields sent the euro on Tuesday against the U.S. dollar and the yen.
The yen heads for its biggest weekly gain in more than a month against the dollar, on tensions in Ukraine and the Chinese economy.
Fears the crisis in Ukraine could intensify led traders to the safe havens of the Japanese yen and Swiss franc.
Eric Viloria, Currency Strategist at Wells Fargo, expects the Kiwi to rise to 88 cents versus the greenback in 2014, after the Reserve Bank of New Zealand on Thursday hiked rates and signaled further tightening ahead.
Investors can look to the New Zealand dollar for buying opportunities, in particular against the Australian dollar which is likely to head lower in coming months, says Ed Ponsi, Managing Director at Barchetta Capital Management.
Concerns about China and other developing economies weakened the Australian dollar and currencies closely linked to commodities markets.
David Greene, Head of Dealing at AFEX Australia, says the Reserve Bank of New Zealand will likely hike interest rates on Thursday, on the back of stable economic conditions.
The ECB's forward guidance may adjust policy to tighten the slack in the Euro zone economy, a senior ECB official said.
The U.S. dollar was supported by hopes U.S. job growth would pick up in the wake of last week's data.
Unexpectedly strong non-farm payroll data boosted the dollar, despite the cold winter across much of the United States.
The euro added half a cent after the European Central Bank left interest rates unchanged.
The yen extended its losses against the dollar and euro as concerns over the standoff between Russia and Ukraine eased somewhat.
The dollar, ruble and euro rose against the yen on Tuesday, helped by signs Russia may want to avoid more military action in Ukraine.
Ukraine tension shakes investors, who head for the greenback on strong US spending data.
The dollar fell to a two-month low against the euro after data showed euro zone inflation unexpectedly held steady this month.
Fears over a Russian intervention in Ukraine and a Chinese slowdown sent traders to the Swiss franc and Japanese yen.
Putin's war games in Ukraine and a government report showing new housing sales at five-year highs both boosted the greenback on Wednesday.
The dollar fell against a basket of major currencies after soft U.S. consumer confidence data drove bond yields lower.
The dollar lost its safe haven bounce as risk appetite improved amid expectations that Ukraine would receive international aid.