LONDON: The dollar held steady versus a basket of major currencies on Wednesday, nursing losses suffered the previous day in its biggest one-day fall so far this month.
The dollar index traded at 97.304 .DXY as of 0530 GMT (1.30 a.m. EDT), having fallen back from a three-month high of 98.151 set on Tuesday, when it ended up falling about 0.7 percent.
In part the dollar was a victim of its own success, having climbed for most of the past four weeks to provide bulls with tempting profits.
“There was no obvious catalyst for the dollar pullback but USD losses coincided with a retreat in equity markets and lower U.S. front-end yields,” analysts at BNP Paribas wrote in a note to clients.
Yet fundamentals favor the currency given the Federal Reserve remains on track to hike interest rates later this year.
“We expect to see good interest to buy the U.S. currency on this pullback and we remain generally bullish,” say BNP.
