The dollar gained ground and brought the yen on Wednesday down to almost its lowest point in decades, however Tokyo’s increased threat of intervening in the currency prevented further losses in the Japanese yen.  

The US Dollar Index ranged at about 104.5 index points on Wednesday morning. After (Fed) policymakers’ dovish remarks on Tuesday, the DXY has dropped from the weekly high of 105.1 index points. The focus will turn to the US ADP Employment Change and the ISM Services PMI, which are scheduled for release on Wednesday. 

Currency traders will also be watching Wednesday’s Fed Powell speech, which may provide some clues regarding the direction of interest rates and monetary policy. Market fundamentals highlighted the Greenback may gain ground on its competitors if Fed Chairman Powell makes any hawkish remarks.  

According to Cleveland Fed President Loretta Mester’s statement on Tuesday, the US central bank is expected to lower rates this year. Mester mentioned that, depending on the data, the June policy meeting could happen. Three rate cuts this year are a “very reasonable baseline,” according to San Francisco Fed President Mary Daly. 

February JOLTS Job Openings increased to 8.756 million in February from a downwardly revised 8.748 million in January, according to data released by the US Bureau of Labor Statistics on Tuesday. This figure exceeded market expectations.  

Furthermore, from a 3.8% decline in the prior reading, Factory Orders improved to 1 point 4 percent MoM in February. However, the US Dollar may gain from safe-haven assets being boosted by the escalating geopolitical tensions in the Middle East and Russia-Ukraine.  

Some of the most senior members of Iran’s Revolutionary Guard were slain when warplanes attacked a building inside the country’s consulate complex in Syria on Monday. Furthermore, there have been fresh reports of attacks in the Red Sea against commercial ships.