2024.01.0320:27:00UTC+00U.S. Dollar Sees Further Upside Amid Interest Rate Uncertainty

Following a positive start to the new year, the value of the U.S. dollar has seen further upside on Wednesday amid fading optimism about early interest rate cuts by the Federal Reserve.

The U.S. dollar index has risen 0.26 points or 0.3 percent to 102.46, moving higher for the fourth consecutive session.

The greenback is trading at 143.26 yen compared to the 141.99 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0920 compared to yesterday's $1.0942.

The continued advance by the dollar comes following the release of the minutes of the Federal Reserve's latest monetary policy meeting.

While the minutes reiterated Fed officials widely expect to begin lowering rates in 2024, they also highlighted an "unusually elevated degree of uncertainty" about the outlook.

Several analysts suggested the Fed minutes have decrease the likelihood that the central bank will lower interest rates in March.

The minutes said participants noted an unusually elevated degree of uncertainty and that it was possible further rate increases could be appropriate.

Several participants also observed that circumstances might warrant keeping rates at current levels for longer than they currently anticipated, the minutes said.

The Fed's next monetary policy meeting is scheduled for January 25-26, with the central bank widely expected to leave interest rates unchanged.