The Federal Reserve Vice-Chairman Stanley Fischer after speaking at a conference in Houston, caused more uncertainty over future U.S. rate hikes with his phrase " simply do not know" as it concerns the course of action they will take at their next meeting in March. Also, Fischer added that it is too early to assess the impact of market volatility.
Elsewhere, demand for the safe-haven yen remained supported as oil prices slipped below $31 a barrel on Wednesday after Saudi Arabia’s oil minister said that production cuts "will not happen", with USD/JPY slipped 0.20% to 111.89.
Furthermore, Iran also stated that it had no interest in reducing production after international sanctions against it were lifted, calling a joint Russian/Saudi proposal for major exporters to freeze output "laughable".
The greenback was lifted against the Sterling pound, with GBP/USD down 0.80% at 1.3909, falling below $1.40 for the first time since March 2009, amid fears over the impact on the economy if the outcome of the June 23 referendum leads to a “Brexit”.
The dollar was also higher against the euro, with EUR/USD dropping 0.32% to 1.0983, which was also wakened this week amid fears over the impact of a “Brexit” on the euro zone.
Elsewhere, USD/CHF edged up 0.22% to trade at 0.9935.
Meanwhile, the Australian and New Zealand dollars were weaker, with AUD/USD declining 0.53% to 0.7165 and with NZD/USD retreating 0.57% to 0.6607.
The dollar rose 0.37% against its Canadian counterpart, with USD/CAD to trade at 1.3842.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.35% at 97.80, the highest since February 3.