Greenback edges greater as international considerations proceed to weigh

© Reuters. Dollar remains supported vs. rivals in risk-off trade

Investing.com – The dollar edged higher against the other major currencies on Wednesday, as concerns over global geopolitical tensions continued to dampen demand for riskier assets.

declined 0.54% to 118.42.

Investors remained cautious after North Korea confirmed on Wednesday that it had conducted a nuclear test and said that it won’t give up nuclear capability unless U.S. abandons its hostile foreign policy towards the country.

Markets were also jittey amid growing tensions between Iran and Saudi Arabia, following the execution of a prominent Saudi Shia cleric.

Meanwhile, investors were eyeing the release of U.S. employment and trade balance reports, as well as the minutes of the Federal Reserve’s most recent policy meeting due later in the day, for potential hints on the U.S. central bank’s next steps.

edged down 0.12% at 1.0734.

In the euro zone, Markit earlier said that its rose to 54.2 in December from 53.9 the previous month, compared to expectations for an unchanged reading.

rose to 56.0 last month from 55.4 in November, while the fell to 49.8 from 50.0.

Elsewhere, the dollar was higher against the pound and the Swiss franc, with down 0.10% at 1.4657 and with adding 0.11% to 1.0101.

Markit said its fell to 55.5 last month from a reading of 55.9 in November. Analysts had expected the index to dip to 55.6 in December.

The Australian and New Zealand dollars were weaker, with down 1.33% at 0.7067 and with retreating 0.96% to 0.6639.

Meanwhile, gained 0.73% to trade at a 12-year high of 1.4095.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.10% at 99.56.

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Greenback edges greater as international considerations proceed to weigh