The dollar held near its two-week peak on Wednesday, as lingering concerns over Sino-U.S. trade tensions helped lift safe haven currencies while forex investors awaited cues from the U.S. Federal Reserve on the path of future interest rate increases.
The dollar has been weighed by signs the Fed might slow the pace of future rate increases in recent weeks, due to slowing global growth, peak corporate earnings and escalating trade tensions.
Focus is now on a speech by Fed Chairman Jerome Powell later on Wednesday and the minutes from the Fed's Nov. 7-8 meeting on Thursday. Markets hope to be able to gauge the Fed's thinking on the speed and number of rate hikes in the current cycle.
Trump's comments this week that it was "highly unlikely" he would accept China's request to hold off a planned increase in tariffs drove investors to safe-haven currencies such as the dollar and the yen.
USD/JPY hit a two-week high of 113.85 on Wednesday.
EUR/USD slipped to 1.1267. The single currency has shed 1.5 percent of its value in recent sessions due to signs of weakening eurozone economic momentum and ongoing tensions between the European Union and Italy over Rome's free spending budget.
Cable nudged a touch lower to 1.2730. The pound is likely to remain under pressure as traders bet that British Prime Minister Theresa May would fail to get the nod for her Brexit agreement in a fractious parliament.
