Investing.com - The euro edged higher against the dollar on Wednesday as investors looked ahead to a monetary policy decision and rate statement by the Federal Reserve later in the day while concerns over the prospects of a Greek default continued to spook markets.
EUR/USD edged up 0.16% to 1.1264, off lows of 1.1239.
Investors were awaiting a rate statement from the Fed later in the day for any indication about a possible timeline for hiking interest rates, which have remained close to zero since late 2008.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, eased to 95.13, holding above Tuesday’s lows of 94.80.
The single currency remained on the defensive as a deadlock between Greece and its international lenders continued ahead of the approaching deadline for Greece’s repayments to the International Monetary Fund.
Europe wants Greece to make spending cuts in order to secure a deal that will unlock €7.2 billion in bailout funds and prevent Athens defaulting on its debts when its bailout expires at the end of the month.
A default by Greece could lead to the country’s exit from the euro zone.
But Greek Prime Minister Alexis Tsipras stuck to a hard line on Wednesday, reiterating that further cuts cannot be made.
The Greek central bank warned Wednesday that the country could be plunged into an “uncontrollable crisis”, unless a deal is agreed soon.
The euro gained ground against the softer yen, with EUR/JPY up 0.75% to 139.75, while USD/JPY added 0.59% to trade at 124.09.