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    Dollar slips lower amid U.S. rate hike uncertainty

    The dollar slipped lower against the other major currencies on Wednesday, as uncertainty over the timing of the next U.S. rate hike continued to weigh on the greenback.

    USD/JPY fell 0.27% at 107.07.

    Sentiment on the greenback remained fragile after Federal Reserve Chair Janet Yellen indicated on Monday that the U.S. central bank won’t be raising interest rates until uncertainty over the economic outlook is resolved.

    Yellen said she expects the economic recovery to continue but gave no indications on the timing of a next rate increase.

    EUR/USD edged up 0.11% to 1.13708, close to Monday’s three-week highs of 1.1392.

    The dollar was steady against the pound, with GBP/USD at 1.4539 and was lower against the Swiss franc, with USD/CHF shedding 0.23% to 0.9632.

    The U.K. Office for National Statistics earlier said that industrial production rose 2.0% in April after a 0.3% increase in March, the largest monthly increase since July 2012.

    Manufacturing output rose 2.3% after a 0.1% increase in March, in what was also the fastest monthly increase since July 2012.

    The pound’s gains were held in check however amid ongoing uncertainty over whether Britain will remain in the European Union or not at a referendum on June 23.

    The Australian dollar was weaker, with AUD/USD down 0.20% at 0.7443, off the one-month highs of 0.7463 hit overnight, while NZD/USD added 0.17% to 0.6989.

    Elsewhere, USD/CAD slipped 0.18% to 1.2714, the lowest since May 4.

    The commodity-related loonie remained supported as oil prices continued to rise for a third consecutive session on Wednesday amid speculation weekly supply data due later in the session will show U.S. crude inventories fell at a faster pace than expected last week.

    The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.13% at 93.72, the lowest since May 11.


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