(Reuters) The dollar ended steady to modestly higher on Wednesday, hitting a three-week high against the yen, as Federal Reserve officials saw the likelihood of two more interest rate increases for a total of four in 2018 based on a solid economic outlook.
The greenback’s bounce tied to the Fed’s perceived hawkish stance faded as traders booked profits in advance of the European Central Bank’s meeting on Thursday, where policy-makers may discuss the timing of winding down its 2.55-trillion-euro bond-purchase programme.
“It’s the nature of a volatile market we are facing now. Europe ultimately has a bit more to worry about than we do,” said Juan Perez, currency trader at Monex Consulting in Washington.
