On Wednesday the greenback was broadly higher against its peers, as it was supported by growing expectations for a U.S. rate hike in
the coming months and as investors
eyed upcoming U.S. economic data.
Demand for the dollar continued to be backed as investors await the latest U.S. jobs report, due out on Friday, which was expected to support expectations for higher interest rates.
EUR/USD edged up 0.14% to 1.0747 after data showing manufacturing activity across the euro zone grew at the fastest pace since last May in March indicated that the recovery in the region is continuing to gain traction.
The pound was lower, with GBP/USD down 0.41% to 1.4757 even as data showed that the U.K. manufacturing sector expanded at the fastest rate in eight months in March.
Elsewhere, the dollar was steady against the yen, with USD/JPY at 120.22 and lower against the Swiss franc, with USD/CHF edging down 0.17% to 0.9708.
The yen was mildly firmer after the Bank of Japan's tankan business sentiment survey showed that sentiment among Japan's large manufacturers held steady in the first quarter but is expected to deteriorate in the current quarter.
The Australian, New Zealand and Canadian dollars were broadly weaker, with AUD/USD slipping 0.12% to 0.7595 and NZD/USD dropping 0.71% to 0.7417, while USD/CAD added 0.12% to trade at 1.2697.
Statistics Australia reported on Wednesday that building approvals dropped 3.2% in February, compared to expectations for a 4.0% decline. January's figure was revised to a 5.9% increase from a previously estimated 7.9% gain.
Earlier, the export-linked currencies found support, after data
showed that manufacturing activity in China swung back into expansion
territory last month.
China's manufacturing PMI rose to 50.1 in March from a reading of 49.9 the previous month, confounding expectations for a slip to 49.7.
Later in the day, the U.S. was to release the ADP nonfarm payrolls report, while the Institute of Supply Management was to release data on manufacturing activity.
