Investing.com - The dollar gained ground on Wednesday, pulling further away from the multi-month lows hit earlier in the week, while sterling slid lower as markets braced for Britain to trigger its exit from the European Union.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, ticked up 0.2% to 99.74.
The index plumbed 98.67 on Monday, its lowest since November 11 in the wake of President Donald Trump’s failed healthcare overhaul bill.
The dollar was boosted as investor focus shifted back to prospects for further U.S. interest rates hikes this year.
Federal Reserve Vice Chairman Stanley Fischer said on Tuesday that two more rate hikes this year seemed "about right."
The Fed raised interest rates earlier this month and indicated that it saw two further hikes this year.
Expectations for higher interest rates received a boost after the Conference Board said its index of U.S. consumer confidence rose its highest since December 2000 this month.
The dollar was a touch lower against the safe haven yen, with USD/JPY at 111.05, holding above Monday’s trough of 110.10, the lowest since November 18.
The euro was weaker, with EUR/USD down 0.27% to 1.0784.
Sterling was also lower, with GBP/USD sliding 0.34% to 1.2403 as investors awaited British Prime Minister Theresa May's move later on Wednesday to trigger Article 50 of the Lisbon Treaty and formally begin the two year process of withdrawing from the EU.
The euro edged higher against the pound, with EUR/GBP ticking up 0.1% to 0.8691.