Investing.com - The U.S. dollar was steady against a basket of the other major currencies on Wednesday after backing away from almost seven month lows, while China’s yuan eased after the country’s credit rating was cut.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 97.32 by 07.21 GMT.
The index hit 96.83 on Monday, the lowest trough since November 9, having given up all the gains it had made following the U.S. presidential election in November amid concerns surrounding the Trump election campaign's suspected links with Russia.
The dollar hit a one-week high against the yen, with USD/JPY rising 0.16% to 111.94.
The euro was a touch lower, with EUR/USD at 1.1177, off the six-and-a-half month highs of 1.1267 set on Tuesday.
Investors were looking ahead to the minutes of the Federal Reserve’s latest meeting which were due for publication at 14.00 ET (1800 GMT).
The Fed is widely expected to hike rates in June, but given the recent run of weak economic data and mounting political turmoil investors will be watching for fresh cues about its next step.
Sterling edged higher, with GBP/USD inching up 0.13% to 1.2974 in the aftermath of the deadly suicide bombing in Manchester.
Meanwhile, China’s yuan dipped after Moody’s downgraded the country’s credit rating for the first time in almost three decades.
Moody’s warned that China’s financial strength is likely to deteriorate in the coming years, as its economy slows and its national debt keeps rising.
USD/CNY initially hit highs of 6.9021 before pulling back to 6.8890.
The Australian dollar was also hit by the ratings downgrade of its key trading partner, with AUD/USD falling 0.27% to 0.7459. NZD/USD was steady at 0.7011.