U.S. dollar broadly higher amid geopolitical risks

The dollar index rose 0.1% to 97.23 after a two-day rise

The U.S. dollar was broadly higher on Wednesday as geopolitical risks kept markets on edge and investors awaited minutes from the country’s central bank for signals on future rate cuts.

With many markets in Asia shut for Lunar New Year holidays, investors were looking ahead to the U.S. central bank’s readout of its last meeting and the country’s other economic data for trading catalysts.

We’re seeing a bit of dollar strength in context of the FOMC minutes, durable goods, and maybe just squaring up some shorts ahead of that, said IG market analyst Tony Sycamore. But I just feel like we’re in a bit of a holding pattern.

The yen slipped after the first tranche of mega-investments Tokyo is making in the U.S. was announced.

The yen softened 0.2% to 153.56 per dollar.

The New Zealand dollar plunged after the Reserve Bank of New Zealand held pat on rates and said policy would need to remain accommodative.

The euro was down after a report that Christine Lagarde is expected to leave as president of the European Central Bank (ECB) before the end of her term.

The European currency slipped 0.09% at $1.1842. The dollar index gained 0.1% to 97.23 after a two-day rise.

Weaker risk sentiment, because of concerns around renewed geopolitical tensions in the Middle East and volatility in U.S. equity markets, briefly supported the USD, Samara Hammoud, a currency strategist at Commonwealth Bank of Australia, wrote in a note.

The Fed’s Open Market Committee issues minutes from its January meeting later on Wednesday, while the Commerce Department will release durable goods data for December and on Friday will issue its first estimate for fourth quarter gross domestic product.