© Reuters.  Dollar remains supported ahead of Fed meeting minutes© Reuters. Dollar remains supported ahead of Fed meeting minutes

Investing.com – The U.S. dollar was hovering at a one-week high against other major currencies on Wednesday, as investors were eyeing the release of the minutes of the Federal Reserve’s latest policy meeting.

The greenback remained supported against other major currencies despite sustained U.S. deficit worries. The U.S. deficit is projected projected to climb near $1 trillion in 2019 following the recent announcement of infrastructure spending and large corporate tax cuts.

The dollar has been pressured lower recently by expectations for a faster pace of monetary tightening outside the U.S., which would lessen the divergence between the Fed and other central banks.

Market participants were looking ahead to the minutes of the Fed’s latest policy meeting, due on Wednesday, for potential indications on the pace of future rate hikes.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.10% at 89.74 by 05:15 a.m. ET (09:15 GMT), its highest since February 14.

The euro was steady, with EUR/USD at 1.2328, while GBP/USD fell 0.34% to 1.3948.

Data earlier showed that euro zone private sector activity slowed, but remained solid in February.

In the UK, official data showed that the unemployment rate inched up from its lowest level in more than four decades in December, while the average earnings index increased in line with expectations.

Elsewhere, the yen was weaker, with USD/JPY up 0.19% at 107.52, while USD/CHF held steady at 0.9370.

The Australian dollar was lower, with AUD/USD sliding 0.38% to 0.7853, while NZD/USD was little changed at 0.7343.

Meanwhile, USD/CAD edged up 0.11% to 1.2662.

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