LONDON: The dollar was steady against the euro and the yen on Wednesday as investors looked ahead to a fresh batch of U.S. economic reports and a European Central Bank meeting for further indications on the direction of monetary policy.
EUR/USD was at five-week lows of 1.1163, while USD/JPY was last at 119.73, holding below Tuesday’s highs of 120.25.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 95.50, not far from 11-year peaks.
The dollar has strengthened so far this year as upbeat economic data indicated that the economic recovery was on track, supporting expectations for higher interest rates.
The U.S. was to release survey data on service sector activity and a report on private sector jobs growth later Wednesday, ahead of Friday’s nonfarm payrolls report.
The euro remained under pressure as investors turned their attention to the upcoming ECB meeting on Thursday, when it was expected to announce details of its quantitative easing program, which is due to start this month.
Elsewhere, the euro was little changed against the yen, with EUR/JPY at 133.77.